Sen. John J. Cullerton
Filed: 5/8/2013
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 2404
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 2404 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Public Labor Relations Act is | ||||||
5 | amended by changing Section 4 as follows: | ||||||
6 | (5 ILCS 315/4) (from Ch. 48, par. 1604)
| ||||||
7 | Sec. 4. Management Rights. Employers shall not be required | ||||||
8 | to bargain
over matters of inherent managerial policy, which | ||||||
9 | shall include such areas
of discretion or policy as the | ||||||
10 | functions of the employer, standards of
services,
its overall | ||||||
11 | budget, the organizational structure and selection of new
| ||||||
12 | employees, examination techniques
and direction of employees. | ||||||
13 | Employers, however, shall be required to bargain
collectively | ||||||
14 | with regard to
policy matters directly affecting wages, hours | ||||||
15 | and terms and conditions of employment
as well as the impact | ||||||
16 | thereon upon request by employee representatives , but |
| |||||||
| |||||||
1 | excluding (i) the payment of the additional member | ||||||
2 | contributions set forth in subsections (a-1) and (a-5) of | ||||||
3 | Sections 14-133, 15-157, and 16-152 of the Illinois Pension | ||||||
4 | Code and (ii) the provision of compensation or benefits to | ||||||
5 | employees who make the election under Section 14-106.5, | ||||||
6 | 15-132.9, or 16-122.9 of the Illinois Pension Code in order to | ||||||
7 | offset all or part of any compensation or benefit limitations | ||||||
8 | included as part of the elections under those Sections .
| ||||||
9 | To preserve the rights of employers and exclusive | ||||||
10 | representatives which
have established collective bargaining | ||||||
11 | relationships or negotiated collective
bargaining agreements | ||||||
12 | prior to the effective date of this Act, employers
shall be | ||||||
13 | required to bargain collectively with regard to any matter | ||||||
14 | concerning
wages, hours or conditions of employment about which | ||||||
15 | they have bargained
for and agreed to in a collective | ||||||
16 | bargaining agreement
prior to the effective date of this Act , | ||||||
17 | but excluding (i) the payment of the additional member | ||||||
18 | contributions set forth in subsections (a-1) and (a-5) of | ||||||
19 | Sections 14-133, 15-157, and 16-152 of the Illinois Pension | ||||||
20 | Code and (ii) the provision of compensation or benefits to | ||||||
21 | employees who make the election under Section 14-106.5, | ||||||
22 | 15-132.9, or 16-122.9 of the Illinois Pension Code in order to | ||||||
23 | offset all or part of any compensation or benefit limitations | ||||||
24 | included as part of the elections under those Sections .
| ||||||
25 | The chief judge of the judicial circuit that employs a | ||||||
26 | public employee who
is
a court reporter, as defined in the |
| |||||||
| |||||||
1 | Court Reporters Act, has the authority to
hire, appoint, | ||||||
2 | promote, evaluate, discipline, and discharge court reporters
| ||||||
3 | within that judicial circuit.
| ||||||
4 | Nothing in this amendatory Act of the 94th General Assembly | ||||||
5 | shall
be construed to intrude upon the judicial functions of | ||||||
6 | any court. This
amendatory Act of the 94th General Assembly | ||||||
7 | applies only to nonjudicial
administrative matters relating to | ||||||
8 | the collective bargaining rights of court
reporters.
| ||||||
9 | (Source: P.A. 94-98, eff. 7-1-05.)
| ||||||
10 | Section 10. The State Employees Group Insurance Act of 1971 | ||||||
11 | is amended by changing Sections 6.9 and 6.10 and by adding | ||||||
12 | Sections 6.10A and 6.16 as follows:
| ||||||
13 | (5 ILCS 375/6.9)
| ||||||
14 | Sec. 6.9. Health benefits for community college benefit | ||||||
15 | recipients and
community college dependent beneficiaries. | ||||||
16 | (a) Purpose. It is the purpose of this amendatory Act of | ||||||
17 | 1997 to establish
a uniform program of health benefits for | ||||||
18 | community college benefit recipients
and their dependent | ||||||
19 | beneficiaries under the administration of the Department of
| ||||||
20 | Central Management Services.
| ||||||
21 | (b) Creation of program. Beginning July 1, 1999, the | ||||||
22 | Department of
Central Management Services shall be responsible | ||||||
23 | for administering a program of
health benefits for community | ||||||
24 | college benefit recipients and community college
dependent |
| |||||||
| |||||||
1 | beneficiaries under this Section. The State Universities | ||||||
2 | Retirement
System and the boards of trustees of the various | ||||||
3 | community college districts
shall cooperate with the | ||||||
4 | Department in this endeavor.
| ||||||
5 | (c) Eligibility. All community college benefit recipients | ||||||
6 | and community
college dependent beneficiaries shall be | ||||||
7 | eligible to participate in the program
established under this | ||||||
8 | Section, without any interruption or delay in coverage
or | ||||||
9 | limitation as to pre-existing medical conditions. Eligibility | ||||||
10 | to
participate shall be determined by the State Universities | ||||||
11 | Retirement System.
Eligibility information shall be | ||||||
12 | communicated to the Department of Central
Management Services | ||||||
13 | in a format acceptable to the Department.
| ||||||
14 | (d) Coverage. The health benefit coverage provided under | ||||||
15 | this Section
shall be a program of health, dental, and vision | ||||||
16 | benefits.
| ||||||
17 | The program of health benefits under this Section may | ||||||
18 | include any or all of
the benefit limitations, including but | ||||||
19 | not limited to a reduction in benefits
based on eligibility for | ||||||
20 | federal medicare benefits, that are provided under
subsection | ||||||
21 | (a) of Section 6 of this Act for other health benefit programs | ||||||
22 | under
this Act.
| ||||||
23 | (e) Insurance rates and premiums. The Director shall | ||||||
24 | determine the
insurance rates and premiums for community | ||||||
25 | college benefit recipients and
community college dependent | ||||||
26 | beneficiaries. Rates and premiums may be based
in part on age |
| |||||||
| |||||||
1 | and eligibility for federal Medicare coverage.
The Director | ||||||
2 | shall also determine premiums that will allow for the
| ||||||
3 | establishment of an actuarially sound reserve for this program.
| ||||||
4 | The cost of health benefits under the program shall be paid | ||||||
5 | as follows:
| ||||||
6 | (1) For a community college benefit recipient, costs | ||||||
7 | shall be an amount equal to the difference between the | ||||||
8 | projected costs of health benefits under the program and | ||||||
9 | projected contributions from community college districts, | ||||||
10 | active contributors, and other income of the program. Other | ||||||
11 | income of the program shall exclude contributions made by | ||||||
12 | the State to retire unpaid claims of the program up to 75% | ||||||
13 | of the total
insurance rate shall be paid from the | ||||||
14 | Community College Health Insurance
Security Fund .
| ||||||
15 | (2) The balance of the rate of insurance, including the | ||||||
16 | entire premium
for any coverage for community college | ||||||
17 | dependent beneficiaries that has been
elected, shall be | ||||||
18 | paid by deductions authorized by the community college
| ||||||
19 | benefit recipient to be withheld from his or her monthly | ||||||
20 | annuity or benefit
payment from the State Universities | ||||||
21 | Retirement System; except that (i) if the
balance of the | ||||||
22 | cost of coverage exceeds the amount of the monthly annuity | ||||||
23 | or
benefit payment, the difference shall be paid directly | ||||||
24 | to the State
Universities Retirement System by the | ||||||
25 | community college benefit recipient, and
(ii) all or part | ||||||
26 | of the balance of the cost of coverage may, at the option |
| |||||||
| |||||||
1 | of
the board of trustees of the community college district, | ||||||
2 | be paid to
the State Universities Retirement System by the | ||||||
3 | board of the community college
district from which the | ||||||
4 | community college benefit recipient retired. The State
| ||||||
5 | Universities Retirement System shall promptly deposit all | ||||||
6 | moneys withheld by or
paid to it under this subdivision | ||||||
7 | (e)(2) into the Community College Health
Insurance | ||||||
8 | Security Fund. These moneys shall not be considered assets | ||||||
9 | of the
State Universities Retirement System.
| ||||||
10 | (f) Financing. All revenues arising from the | ||||||
11 | administration of the health
benefit program established under | ||||||
12 | this Section shall be deposited into the
Community College | ||||||
13 | Health Insurance Security Fund, which is hereby created as a
| ||||||
14 | nonappropriated trust fund to be held outside the State | ||||||
15 | Treasury, with the
State Treasurer as custodian. Any interest | ||||||
16 | earned on moneys in the Community
College Health Insurance | ||||||
17 | Security Fund shall be deposited into the Fund.
| ||||||
18 | Moneys in the Community College Health Insurance Security | ||||||
19 | Fund shall be used
only to pay the costs of the health benefit | ||||||
20 | program established under this
Section, including associated | ||||||
21 | administrative costs and the establishment of a
program | ||||||
22 | reserve. Beginning January 1, 1999,
the Department of Central | ||||||
23 | Management Services may make expenditures from the
Community | ||||||
24 | College Health Insurance Security Fund for those costs.
| ||||||
25 | (g) Contract for benefits. The Director shall by contract, | ||||||
26 | self-insurance,
or otherwise make available the program of |
| |||||||
| |||||||
1 | health benefits for community
college benefit recipients and | ||||||
2 | their community college dependent beneficiaries
that is | ||||||
3 | provided for in this Section. The contract or other arrangement | ||||||
4 | for
the provision of these health benefits shall be on terms | ||||||
5 | deemed by the Director
to be in the best interest of the State | ||||||
6 | of Illinois and the community college
benefit recipients based | ||||||
7 | on, but not limited to, such criteria as
administrative cost, | ||||||
8 | service capabilities of the carrier or other contractor,
and | ||||||
9 | the costs of the benefits.
| ||||||
10 | (h) Continuation of program. It is the intention of the | ||||||
11 | General Assembly
that the program of health benefits provided | ||||||
12 | under this Section be maintained
on an ongoing, affordable | ||||||
13 | basis. The program of health benefits provided under
this | ||||||
14 | Section may be amended by the State and is not intended to be a | ||||||
15 | pension or
retirement benefit subject to protection under | ||||||
16 | Article XIII, Section 5 of the
Illinois Constitution.
| ||||||
17 | (i) Other health benefit plans. A health benefit plan | ||||||
18 | provided by a
community college district (other than a | ||||||
19 | community college district subject to
Article VII of the Public | ||||||
20 | Community College Act) under the terms of a
collective | ||||||
21 | bargaining agreement in effect on or prior to the effective | ||||||
22 | date of
this amendatory Act of 1997 shall continue in force | ||||||
23 | according to the terms of
that agreement, unless otherwise | ||||||
24 | mutually agreed by the parties to that
agreement and the | ||||||
25 | affected retiree.
A community college benefit recipient or | ||||||
26 | community college dependent
beneficiary whose coverage under |
| |||||||
| |||||||
1 | such a plan expires shall be eligible to begin
participating in | ||||||
2 | the program established under this Section without any
| ||||||
3 | interruption or delay in coverage or limitation as to | ||||||
4 | pre-existing medical
conditions.
| ||||||
5 | This Act does not prohibit any community college district | ||||||
6 | from offering
additional health benefits for its retirees or | ||||||
7 | their dependents or survivors.
| ||||||
8 | (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
| ||||||
9 | (5 ILCS 375/6.10)
| ||||||
10 | Sec. 6.10. Contributions to the Community College Health | ||||||
11 | Insurance
Security Fund.
| ||||||
12 | (a) Beginning January 1, 1999, every active contributor of | ||||||
13 | the State
Universities Retirement System (established under | ||||||
14 | Article 15 of the Illinois
Pension Code) who (1) is a full-time | ||||||
15 | employee of a community college district
(other than a | ||||||
16 | community college district subject to Article VII of the Public
| ||||||
17 | Community College Act)
or an association of community college | ||||||
18 | boards and (2) is not an employee as
defined in Section 3 of | ||||||
19 | this Act shall make contributions toward the cost of
community | ||||||
20 | college annuitant and survivor health benefits at the rate of | ||||||
21 | 0.50%
of salary. Beginning July 1, 2014, the contribution rate | ||||||
22 | under this subsection (a) shall be 0.93% of salary.
| ||||||
23 | These contributions shall be deducted by the employer and | ||||||
24 | paid to the State
Universities Retirement System as service | ||||||
25 | agent for the Department of Central
Management Services. The |
| |||||||
| |||||||
1 | System may use the same processes for collecting the
| ||||||
2 | contributions required by this subsection that it uses to | ||||||
3 | collect the
contributions received from those employees under | ||||||
4 | Section 15-157 of the
Illinois Pension Code. An employer may | ||||||
5 | agree to pick up or pay the
contributions required under this | ||||||
6 | subsection on behalf of the employee;
such contributions shall | ||||||
7 | be deemed to have been paid by the employee.
| ||||||
8 | The State Universities Retirement System shall promptly | ||||||
9 | deposit all moneys
collected under this subsection (a) into the | ||||||
10 | Community College Health Insurance
Security Fund created in | ||||||
11 | Section 6.9 of this Act. The moneys collected under
this | ||||||
12 | Section shall be used only for the purposes authorized in | ||||||
13 | Section 6.9 of
this Act and shall not be considered to be | ||||||
14 | assets of the State Universities
Retirement System. | ||||||
15 | Contributions made under this Section are not transferable
to | ||||||
16 | other pension funds or retirement systems and are not | ||||||
17 | refundable upon
termination of service.
| ||||||
18 | (b) Beginning January 1, 1999, every community college | ||||||
19 | district
(other than a community college district subject to | ||||||
20 | Article VII of the Public
Community College Act) or association
| ||||||
21 | of community college boards that is an employer under the State | ||||||
22 | Universities
Retirement System shall contribute toward the | ||||||
23 | cost of the community college
health benefits provided under | ||||||
24 | Section 6.9 of this Act an amount equal to 0.50%
of the salary | ||||||
25 | paid to its full-time employees who participate in the State
| ||||||
26 | Universities Retirement System and are not members as defined |
| |||||||
| |||||||
1 | in Section 3 of
this Act. Beginning July 1, 2014, the | ||||||
2 | contribution rate under this subsection (b) shall be 0.93% of | ||||||
3 | salary.
| ||||||
4 | These contributions shall be paid by the employer to the | ||||||
5 | State Universities
Retirement System as service agent for the | ||||||
6 | Department of Central Management
Services. The System may use | ||||||
7 | the same processes for collecting the
contributions required by | ||||||
8 | this subsection that it uses to collect the
contributions | ||||||
9 | received from those employers under Section 15-155 of the
| ||||||
10 | Illinois Pension Code.
| ||||||
11 | The State Universities Retirement System shall promptly | ||||||
12 | deposit all moneys
collected under this subsection (b) into the | ||||||
13 | Community College Health Insurance
Security Fund created in | ||||||
14 | Section 6.9 of this Act. The moneys collected under
this | ||||||
15 | Section shall be used only for the purposes authorized in | ||||||
16 | Section 6.9 of
this Act and shall not be considered to be | ||||||
17 | assets of the State Universities
Retirement System. | ||||||
18 | Contributions made under this Section are not transferable
to | ||||||
19 | other pension funds or retirement systems and are not | ||||||
20 | refundable upon
termination of service.
| ||||||
21 | The Department of Healthcare and Family Services, or any | ||||||
22 | successor agency designated to procure healthcare contracts | ||||||
23 | pursuant to this Act, is authorized to establish funds, | ||||||
24 | separate accounts provided by any bank or banks as defined by | ||||||
25 | the Illinois Banking Act, or separate accounts provided by any | ||||||
26 | savings and loan association or associations as defined by the |
| |||||||
| |||||||
1 | Illinois Savings and Loan Act of 1985 to be held by the | ||||||
2 | Director, outside the State treasury, for the purpose of | ||||||
3 | receiving the transfer of moneys from the Community College | ||||||
4 | Health Insurance Security Fund. The Department may promulgate | ||||||
5 | rules further defining the methodology for the transfers. Any | ||||||
6 | interest earned by moneys in the funds or accounts shall inure | ||||||
7 | to the Community College Health Insurance Security Fund. The | ||||||
8 | transferred moneys, and interest accrued thereon, shall be used | ||||||
9 | exclusively for transfers to administrative service | ||||||
10 | organizations or their financial institutions for payments of | ||||||
11 | claims to claimants and providers under the self-insurance | ||||||
12 | health plan. The transferred moneys, and interest accrued | ||||||
13 | thereon, shall not be used for any other purpose including, but | ||||||
14 | not limited to, reimbursement of administration fees due the | ||||||
15 | administrative service organization pursuant to its contract | ||||||
16 | or contracts with the Department.
| ||||||
17 | (c) On or before November 15 of each year, the Board of | ||||||
18 | Trustees of the
State Universities Retirement System shall | ||||||
19 | certify to the Governor, the
Director of Central Management | ||||||
20 | Services, and the State
Comptroller its estimate of the total | ||||||
21 | amount of contributions to be paid under
subsection (a) of this | ||||||
22 | Section for the next fiscal year. Beginning in fiscal year | ||||||
23 | 2008, the amount certified shall be decreased or increased each | ||||||
24 | year by the amount that the actual active employee | ||||||
25 | contributions either fell short of or exceeded the estimate | ||||||
26 | used by the Board in making the certification for the previous |
| |||||||
| |||||||
1 | fiscal year. The State Universities Retirement System shall | ||||||
2 | calculate the amount of actual active employee contributions in | ||||||
3 | fiscal years 1999 through 2005. Based upon this calculation, | ||||||
4 | the fiscal year 2008 certification shall include an amount | ||||||
5 | equal to the cumulative amount that the actual active employee | ||||||
6 | contributions either fell short of or exceeded the estimate | ||||||
7 | used by the Board in making the certification for those fiscal | ||||||
8 | years. The certification
shall include a detailed explanation | ||||||
9 | of the methods and information that the
Board relied upon in | ||||||
10 | preparing its estimate. As soon as possible after the
effective | ||||||
11 | date of this Section, the Board shall submit its estimate for | ||||||
12 | fiscal
year 1999.
| ||||||
13 | (d) Beginning in fiscal year 1999, on the first day of each | ||||||
14 | month, or as
soon thereafter as may be practical, the State | ||||||
15 | Treasurer and the State
Comptroller shall transfer from the | ||||||
16 | General Revenue Fund to the Community
College Health Insurance | ||||||
17 | Security Fund 1/12 of the annual amount appropriated
for that | ||||||
18 | fiscal year to the State Comptroller for deposit into the | ||||||
19 | Community
College Health Insurance Security Fund under Section | ||||||
20 | 1.4 of the State Pension
Funds Continuing Appropriation Act.
| ||||||
21 | (e) Except where otherwise specified in this Section, the | ||||||
22 | definitions
that apply to Article 15 of the Illinois Pension | ||||||
23 | Code apply to this Section.
| ||||||
24 | (Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
| ||||||
25 | (5 ILCS 375/6.10A new) |
| |||||||
| |||||||
1 | Sec. 6.10A. City colleges; optional participation in | ||||||
2 | program of health benefits. Notwithstanding any other | ||||||
3 | provision of this Act, the Department of Central Management | ||||||
4 | Services shall adopt rules authorizing optional participation | ||||||
5 | in the program of health benefits for community college benefit | ||||||
6 | recipients and community college dependent beneficiaries by | ||||||
7 | any person who is otherwise ineligible to participate in that | ||||||
8 | program solely as a result of that or another person's | ||||||
9 | employment with a community college district subject to Article | ||||||
10 | VII of the Public Community College Act. | ||||||
11 | (5 ILCS 375/6.16 new) | ||||||
12 | Sec. 6.16. Health benefit election for Tier I employees and | ||||||
13 | Tier I retirees. | ||||||
14 | (a) For purposes of this Section: | ||||||
15 | "Eligible Tier I employee" means, except as provided in | ||||||
16 | subsection (g) of this Section, an individual who makes or is | ||||||
17 | deemed to have made an election under paragraph (1) of | ||||||
18 | subsection (a) of Section 2-110.3, 14-106.5, 15-132.9, or | ||||||
19 | 16-122.9 of the Illinois Pension Code. | ||||||
20 | "Eligible Tier I retiree" means, except as provided in | ||||||
21 | subsection (g) of this Section, an individual who makes or is | ||||||
22 | deemed to have made an election under paragraph (1) of | ||||||
23 | subsection (a-5) of Section 2-110.3, 14-106.5, 15-132.9, or | ||||||
24 | 16-122.9 of the Illinois Pension Code. | ||||||
25 | "Program of health benefits" means (i) a health plan, as |
| |||||||
| |||||||
1 | defined in subsection (o) of Section 3 of this Act, that is | ||||||
2 | designed and contracted for by the Director under this Act or | ||||||
3 | any successor Act or (ii) if administration of that health plan | ||||||
4 | is transferred to a trust established by the State or an | ||||||
5 | independent Board in order to provide health benefits to a | ||||||
6 | class of a persons that includes eligible Tier I retirees, then | ||||||
7 | the plan of health benefits provided through that trust. | ||||||
8 | (b) As adequate and legal consideration for making an | ||||||
9 | election under paragraph (1) of subsection (a) or (a-5) of | ||||||
10 | Section 2-110.3, 14-106.5, 15-132.9, or 16-122.9 of the | ||||||
11 | Illinois Pension Code, as the case may be, each eligible Tier I | ||||||
12 | employee and each eligible Tier I retiree shall receive a | ||||||
13 | vested and enforceable contractual right to participate in a | ||||||
14 | program of health benefits while he or she qualifies as an | ||||||
15 | annuitant or retired employee. That right also extends to such | ||||||
16 | a person's dependents and survivors who are eligible under the | ||||||
17 | applicable program of health benefits. | ||||||
18 | (c) Notwithstanding subsection (b), eligible Tier I | ||||||
19 | employees and eligible Tier I retirees may be required to make | ||||||
20 | contributions toward the cost of coverage under a program of | ||||||
21 | health benefits. | ||||||
22 | (d) The vested and enforceable contractual right to a | ||||||
23 | program of health benefits is not offered as, and shall not be | ||||||
24 | considered, a pension or retirement benefit under Article XIII, | ||||||
25 | Section 5 of the Illinois Constitution, the Illinois Pension | ||||||
26 | Code, or any subsequent or successor enactment providing |
| |||||||
| |||||||
1 | pension benefits. | ||||||
2 | (e) Notwithstanding any other provision of law, except | ||||||
3 | subsection (g) of this Section, a Tier I employee or Tier I | ||||||
4 | retiree who has made an election under paragraph (2) of | ||||||
5 | subsection (a) or (a-5) of Section 2-110.3, 14-106.5, 15-132.9, | ||||||
6 | or 16-122.9 of the Illinois Pension Code, as the case may be, | ||||||
7 | shall not be entitled to participate in any program of health | ||||||
8 | benefits under this Act as an annuitant or retired employee | ||||||
9 | receiving a retirement annuity, regardless of any contrary | ||||||
10 | election pursuant to any of those Sections under any other | ||||||
11 | retirement system. | ||||||
12 | Notwithstanding any other provision of law, except | ||||||
13 | subsection (g) of this Section, a Tier I employee who is not | ||||||
14 | entitled to participate in the program of health benefits as an | ||||||
15 | annuitant or retired employee receiving a retirement annuity, | ||||||
16 | due to an election under paragraph (2) of subsection (a) or | ||||||
17 | (a-5) of Section 2-110.3, 14-106.5, 15-132.9, or 16-122.9 of | ||||||
18 | the Illinois Pension Code, as the case may be, shall not be | ||||||
19 | required to make contributions toward the program of health | ||||||
20 | benefits while he or she is an employee or active contributor. | ||||||
21 | However, an active employee may be required to make | ||||||
22 | contributions toward health benefits he or she receives during | ||||||
23 | active service. | ||||||
24 | (f) The Department shall coordinate with each retirement | ||||||
25 | system administering an election in accordance with this | ||||||
26 | amendatory Act of the 98th General Assembly to provide |
| |||||||
| |||||||
1 | information concerning the impact of the election of health | ||||||
2 | benefits. Each System shall include information prepared by the | ||||||
3 | Department in the required election packet. The Department | ||||||
4 | shall make information available to Tier I employees and Tier I | ||||||
5 | retirees through video materials, group presentations, | ||||||
6 | consultation by telephone or other electronic means, or any | ||||||
7 | combination of these methods. The information in the election | ||||||
8 | packet shall include a notice that states: "YOU ARE HEREBY | ||||||
9 | ADVISED THAT THE PROGRAM OF HEALTH BENEFITS OFFERED IS FOR | ||||||
10 | ACCESS TO A GROUP HEALTHCARE PLAN ADMINISTERED BY THE | ||||||
11 | DEPARTMENT, AND YOU MAY BE REQUIRED TO PAY FOR THE FULL COST OF | ||||||
12 | COVERAGE PROVIDED BY THE PLAN, INCLUDING ALL PREMIUM, | ||||||
13 | DEDUCTIBLE, AND COPAY AMOUNTS." | ||||||
14 | (g) Nothing in this Section shall be construed as applying | ||||||
15 | to a person who is eligible to make or who made the election | ||||||
16 | under Section 15-135.1 of the Illinois Pension Code. | ||||||
17 | Section 15. The Governor's Office of Management and Budget | ||||||
18 | Act is amended by changing Sections 7 and 8 as follows:
| ||||||
19 | (20 ILCS 3005/7) (from Ch. 127, par. 417)
| ||||||
20 | Sec. 7.
All statements and estimates of expenditures | ||||||
21 | submitted to the
Office in connection with the preparation of a | ||||||
22 | State budget, and any other
estimates of expenditures, | ||||||
23 | supporting requests for appropriations, shall be
formulated | ||||||
24 | according to the various functions and activities for which the
|
| |||||||
| |||||||
1 | respective department, office or institution of the State | ||||||
2 | government
(including the elective officers in the executive | ||||||
3 | department and including
the University of Illinois and the | ||||||
4 | judicial department) is responsible. All
such statements and | ||||||
5 | estimates of expenditures relating to a particular
function or | ||||||
6 | activity shall be further formulated or subject to analysis in
| ||||||
7 | accordance with the following classification of objects:
| ||||||
8 | (1) Personal services
| ||||||
9 | (2) State contribution for employee group insurance
| ||||||
10 | (3) Contractual services
| ||||||
11 | (4) Travel
| ||||||
12 | (5) Commodities
| ||||||
13 | (6) Equipment
| ||||||
14 | (7) Permanent improvements
| ||||||
15 | (8) Land
| ||||||
16 | (9) Electronic Data Processing
| ||||||
17 | (10) Telecommunication services
| ||||||
18 | (11) Operation of Automotive Equipment
| ||||||
19 | (12) Contingencies
| ||||||
20 | (13) Reserve
| ||||||
21 | (14) Interest
| ||||||
22 | (15) Awards and Grants
| ||||||
23 | (16) Debt Retirement
| ||||||
24 | (17) Non-cost Charges .
| ||||||
25 | (18) State retirement contribution for annual normal cost | ||||||
26 | (19) State retirement contribution for unfunded accrued |
| |||||||
| |||||||
1 | liability. | ||||||
2 | (Source: P.A. 93-25, eff. 6-20-03 .)
| ||||||
3 | (20 ILCS 3005/8) (from Ch. 127, par. 418)
| ||||||
4 | Sec. 8.
When used in connection with a State budget or | ||||||
5 | expenditure or
estimate, items (1) through (16) in the | ||||||
6 | classification of objects stated in
Section 7 shall have the | ||||||
7 | meanings ascribed to those items in Sections 14
through 24.7, | ||||||
8 | respectively, of the State Finance Act. "An Act in relation to | ||||||
9 | State finance",
approved June 10, 1919, as amended.
| ||||||
10 | When used in connection with a State budget or expenditure | ||||||
11 | or
estimate, items (18) and (19) in the classification of | ||||||
12 | objects stated in
Section 7 shall have the meanings ascribed to | ||||||
13 | those items in Sections 24.12 and 24.13, respectively, of the | ||||||
14 | State Finance Act. | ||||||
15 | (Source: P.A. 82-325.)
| ||||||
16 | Section 20. The State Finance Act is amended by changing | ||||||
17 | Section 13 and by adding Sections 24.12 and 24.13 as follows:
| ||||||
18 | (30 ILCS 105/13) (from Ch. 127, par. 149)
| ||||||
19 | Sec. 13.
The objects and purposes for which appropriations | ||||||
20 | are made
are classified and standardized by items as follows:
| ||||||
21 | (1) Personal services;
| ||||||
22 | (2) State contribution for employee group insurance;
| ||||||
23 | (3) Contractual services;
|
| |||||||
| |||||||
1 | (4) Travel;
| ||||||
2 | (5) Commodities;
| ||||||
3 | (6) Equipment;
| ||||||
4 | (7) Permanent improvements;
| ||||||
5 | (8) Land;
| ||||||
6 | (9) Electronic Data Processing;
| ||||||
7 | (10) Operation of automotive equipment;
| ||||||
8 | (11) Telecommunications services;
| ||||||
9 | (12) Contingencies;
| ||||||
10 | (13) Reserve;
| ||||||
11 | (14) Interest;
| ||||||
12 | (15) Awards and Grants;
| ||||||
13 | (16) Debt Retirement;
| ||||||
14 | (17) Non-Cost Charges;
| ||||||
15 | (18) State retirement contribution for annual normal cost; | ||||||
16 | (19) State retirement contribution for unfunded accrued | ||||||
17 | liability; | ||||||
18 | (20) (18) Purchase Contract for Real Estate.
| ||||||
19 | When an appropriation is made to an officer, department, | ||||||
20 | institution,
board, commission or other agency, or to a private | ||||||
21 | association or
corporation, in one or more of the items above | ||||||
22 | specified, such
appropriation shall be construed in accordance | ||||||
23 | with the definitions and
limitations specified in this Act, | ||||||
24 | unless the appropriation act
otherwise provides.
| ||||||
25 | An appropriation for a purpose other than one specified and | ||||||
26 | defined
in this Act may be made only as an additional, separate |
| |||||||
| |||||||
1 | and distinct
item, specifically stating the object and purpose | ||||||
2 | thereof.
| ||||||
3 | (Source: P.A. 84-263; 84-264.)
| ||||||
4 | (30 ILCS 105/24.12 new) | ||||||
5 | Sec. 24.12. "State retirement contribution for annual | ||||||
6 | normal cost" defined. The term "State retirement contribution | ||||||
7 | for annual normal cost" means the portion of the total required | ||||||
8 | State contribution to a retirement system for a fiscal year | ||||||
9 | that represents the State's portion of the System's projected | ||||||
10 | normal cost for that fiscal year, as determined and certified | ||||||
11 | by the board of trustees of the retirement system in | ||||||
12 | conformance with the applicable provisions of the Illinois | ||||||
13 | Pension Code. | ||||||
14 | (30 ILCS 105/24.13 new) | ||||||
15 | Sec. 24.13. "State retirement contribution for unfunded | ||||||
16 | accrued liability" defined. The term "State retirement | ||||||
17 | contribution for unfunded accrued liability" means the portion | ||||||
18 | of the total required State contribution to a retirement system | ||||||
19 | for a fiscal year that is not included in the State retirement | ||||||
20 | contribution for annual normal cost. | ||||||
21 | Section 25. The Budget Stabilization Act is amended by | ||||||
22 | changing Sections 20 and 25 as follows: |
| |||||||
| |||||||
1 | (30 ILCS 122/20) | ||||||
2 | Sec. 20. Pension Stabilization Fund. | ||||||
3 | (a) The Pension Stabilization Fund is hereby created as a | ||||||
4 | special fund in the State treasury. Moneys in the fund shall be | ||||||
5 | used for the sole purpose of making payments to the designated | ||||||
6 | retirement systems as provided in Section 25.
| ||||||
7 | (b) For each fiscal year when the General Assembly's
| ||||||
8 | appropriations and transfers or diversions as required by law
| ||||||
9 | from general funds do not exceed 99% of the
estimated general | ||||||
10 | funds revenues pursuant to subsection (a)
of Section 10, the | ||||||
11 | Comptroller shall transfer from the
General Revenue Fund as | ||||||
12 | provided by this Section a total
amount equal to 0.5% of the | ||||||
13 | estimated general funds revenues
to the Pension Stabilization | ||||||
14 | Fund. | ||||||
15 | (c) For each fiscal year through Fiscal Year 2019 when the | ||||||
16 | General Assembly's
appropriations and transfers or diversions | ||||||
17 | as required by law
from general funds do not exceed 98% of the
| ||||||
18 | estimated general funds revenues pursuant to subsection (b)
of | ||||||
19 | Section 10, the Comptroller shall transfer from the
General | ||||||
20 | Revenue Fund as provided by this Section a total
amount equal | ||||||
21 | to 1.0% of the estimated general funds revenues
to the Pension | ||||||
22 | Stabilization Fund. | ||||||
23 | (c-5) In Fiscal Year 2020 and each fiscal year thereafter, | ||||||
24 | the State Comptroller shall order transferred and the State | ||||||
25 | Treasurer shall transfer the following amounts from the General | ||||||
26 | Revenue Fund to the Pension Stabilization Fund: |
| |||||||
| |||||||
1 | in Fiscal Year 2020, $1,123,333,372; | ||||||
2 | in Fiscal Year 2021, $1,084,470,872; | ||||||
3 | in Fiscal Year 2022, $1,048,083,372; | ||||||
4 | in Fiscal Year 2023, $1,014,170,872; | ||||||
5 | in Fiscal Year 2024, $957,733,372; | ||||||
6 | in Fiscal Year 2025, $905,683,372; | ||||||
7 | in Fiscal Year 2026, $882,458,372; | ||||||
8 | in Fiscal Year 2027, $861,783,372; | ||||||
9 | in Fiscal Year 2028, $818,658,372; | ||||||
10 | in Fiscal Year 2029, $779,358,372; | ||||||
11 | in Fiscal Year 2030, $718,883,372; | ||||||
12 | in Fiscal Year 2031, $663,508,372; | ||||||
13 | in Fiscal Year 2032, $638,233,372; | ||||||
14 | in Fiscal Year 2033, $641,783,372; | ||||||
15 | in Fiscal Year 2034, $1,797,883,372; | ||||||
16 | in Fiscal Year 2035, $1,797,883,372; | ||||||
17 | in Fiscal Year 2036, $1,797,883,372; | ||||||
18 | in Fiscal Year 2037, $1,797,883,372; | ||||||
19 | in Fiscal Year 2038, $1,797,883,372; | ||||||
20 | in Fiscal Year 2039, $1,797,883,372; | ||||||
21 | in Fiscal Year 2040, $1,797,883,372; | ||||||
22 | in Fiscal Year 2041, $1,797,883,372; | ||||||
23 | in Fiscal Year 2042, $1,797,883,372; | ||||||
24 | in Fiscal Year 2043, $1,797,883,372; | ||||||
25 | in Fiscal Year 2044, $1,797,883,372; and | ||||||
26 | in Fiscal Year 2045, $1,797,883,372. |
| |||||||
| |||||||
1 | (c-10) The transfers made pursuant to subsection (c-5) of | ||||||
2 | this Section shall continue until Fiscal Year 2045 or until | ||||||
3 | each of the designated retirement systems, as defined in | ||||||
4 | Section 25, has achieved a funding ratio of at least 90%, | ||||||
5 | whichever occurs first. | ||||||
6 | (d) The Comptroller shall transfer 1/12 of the total
amount | ||||||
7 | to be transferred each fiscal year under this Section
into the | ||||||
8 | Pension Stabilization Fund on the first day of each
month of | ||||||
9 | that fiscal year or as soon thereafter as possible; except that | ||||||
10 | the final transfer of the fiscal year shall be made as soon as | ||||||
11 | practical after the August 31 following the end of the fiscal | ||||||
12 | year. | ||||||
13 | Until Fiscal Year 2020, before Before the final transfer | ||||||
14 | for a fiscal year is made, the Comptroller shall reconcile the | ||||||
15 | estimated general funds revenues used in calculating the other | ||||||
16 | transfers under this Section for that fiscal year with the | ||||||
17 | actual general funds revenues for that fiscal year. The
final | ||||||
18 | transfer for the fiscal year shall be adjusted so that the
| ||||||
19 | total amount transferred under this Section for that fiscal | ||||||
20 | year is equal to the percentage specified in subsection
(b) or | ||||||
21 | (c) of this Section, whichever is applicable, of the actual
| ||||||
22 | general funds revenues for that fiscal year. The actual general | ||||||
23 | funds revenues for the fiscal year shall be calculated in a | ||||||
24 | manner consistent with subsection (c) of
Section 10 of this | ||||||
25 | Act.
| ||||||
26 | (Source: P.A. 94-839, eff. 6-6-06.) |
| |||||||
| |||||||
1 | (30 ILCS 122/25)
| ||||||
2 | Sec. 25. Transfers from the Pension Stabilization Fund. | ||||||
3 | (a) As used in this Section, "designated retirement | ||||||
4 | systems" means: | ||||||
5 | (1) the State Employees' Retirement System of
| ||||||
6 | Illinois; | ||||||
7 | (2) the Teachers' Retirement System of the State of
| ||||||
8 | Illinois; | ||||||
9 | (3) the State Universities Retirement System; | ||||||
10 | (4) the Judges Retirement System of Illinois; and | ||||||
11 | (5) the General Assembly Retirement System. | ||||||
12 | (b) As soon as may be practical after any money is | ||||||
13 | deposited into the Pension Stabilization Fund, the State | ||||||
14 | Comptroller shall apportion the deposited amount among the | ||||||
15 | designated retirement systems and the State Comptroller and | ||||||
16 | State Treasurer shall pay the apportioned amounts to the | ||||||
17 | designated retirement systems. The amount deposited shall be | ||||||
18 | apportioned among the designated retirement systems in | ||||||
19 | proportion to their respective certified State contributions | ||||||
20 | for the State fiscal year in which the payment is made to those | ||||||
21 | systems in the same proportion as their respective portions of | ||||||
22 | the
total actuarial reserve deficiency of the designated | ||||||
23 | retirement systems, as most
recently determined by the | ||||||
24 | Governor's Office of Management and
Budget . Amounts received by | ||||||
25 | a designated retirement system under this Section shall be used |
| |||||||
| |||||||
1 | for funding the unfunded liabilities of the retirement system. | ||||||
2 | Payments under this Section are authorized by the continuing | ||||||
3 | appropriation under Section 1.7 of the State Pension Funds | ||||||
4 | Continuing Appropriation Act. | ||||||
5 | (c) At the request of the State Comptroller, the Governor's | ||||||
6 | Office of Management and Budget shall
determine the individual | ||||||
7 | and total actuarial reserve deficiencies of the
designated | ||||||
8 | retirement systems. For this purpose, the
Governor's Office of | ||||||
9 | Management and Budget shall consider the
latest available audit | ||||||
10 | and actuarial reports of each of the
retirement systems and the | ||||||
11 | relevant reports and statistics of
the Public Pension Division | ||||||
12 | of the Department of
Financial and Professional Regulation. | ||||||
13 | (d) Payments to the designated retirement systems under | ||||||
14 | this Section shall be in addition to, and not in lieu of, any | ||||||
15 | State contributions required under Section 2-124, 14-131, | ||||||
16 | 15-155, 16-158, or 18-131 of the Illinois Pension Code.
| ||||||
17 | Payments to the designated retirement systems under this | ||||||
18 | Section, transferred after the effective date of this | ||||||
19 | amendatory Act of the 98th General Assembly, do not reduce and | ||||||
20 | do not constitute payment of any portion of the required State | ||||||
21 | contribution under Article 2, 14, 15, 16, or 18 of the Illinois | ||||||
22 | Pension Code in that fiscal year. Such amounts shall not | ||||||
23 | reduce, and shall not be included in the calculation of, the | ||||||
24 | required State Contribution under Article 2, 14, 15, 16, or 18 | ||||||
25 | of the Illinois Pension Code in any future year, until the | ||||||
26 | designated retirement system has received payment of |
| |||||||
| |||||||
1 | contributions pursuant to this Act. | ||||||
2 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
3 | Section 30. The Illinois Pension Code is amended by | ||||||
4 | changing Sections 2-108, 2-119.1, 2-125, 2-126, 2-134, 2-162, | ||||||
5 | 7-109, 14-103.10, 14-114, 14-132, 14-133, 14-135.08, 14-152.1, | ||||||
6 | 15-106, 15-107, 15-111, 15-136, 15-156, 15-157, 15-163, | ||||||
7 | 15-165, 15-198, 16-106, 16-121, 16-133, 16-133.1, 16-133.6, | ||||||
8 | 16-136.1, 16-152, and 16-203 and by adding Sections 1-161, | ||||||
9 | 1-162, 2-105.1, 2-105.2, 2-107.9, 2-110.3, 14-103.40, | ||||||
10 | 14-103.41, 14-103.42, 14-106.5, 15-108.1, 15-108.2, 15-112.1, | ||||||
11 | 15-132.9, 16-107.1, 16-107.2, 16-121.1, 16-122.9, 16-133.6, | ||||||
12 | and 16-158.2 as follows: | ||||||
13 | (40 ILCS 5/1-161 new) | ||||||
14 | Sec. 1-161. Tier II Task Force. | ||||||
15 | (a) Definitions. As used in this Section: | ||||||
16 | "Tier II member" means a public employee who, on or after | ||||||
17 | January 1, 2011, became a member or participant of a retirement | ||||||
18 | system or pension fund established under this Code. | ||||||
19 | "Tier II Task Force" or "Task Force" means the Tier II Task | ||||||
20 | Force created by this Section. | ||||||
21 | (b) The Tier II Task Force is hereby created. The Task | ||||||
22 | Force shall be composed of 16 members, appointed as follows: | ||||||
23 | (1) Two members of the House of Representatives | ||||||
24 | appointed by the Speaker of the House, one of whom shall |
| |||||||
| |||||||
1 | serve as co-chair; | ||||||
2 | (2) Two members of the House of Representatives | ||||||
3 | appointed by the Minority Leader of the House; | ||||||
4 | (3) Two members of the Senate appointed by the | ||||||
5 | President of the Senate, one of whom shall serve as | ||||||
6 | co-chair; | ||||||
7 | (4) Two members of the Senate appointed by the Minority | ||||||
8 | Leader of the Senate; and | ||||||
9 | (5) Eight members, appointed by the co-chairs of the | ||||||
10 | Task Force, who are Board members of the public employee | ||||||
11 | unions representing Tier II members, no more than two of | ||||||
12 | which may be appointed from any individual public employee | ||||||
13 | union. | ||||||
14 | (c) The Task Force shall have the following | ||||||
15 | responsibilities: | ||||||
16 | (1) to examine the impact of Public Acts 96-889 and | ||||||
17 | 96-1495 on the retirement security of Tier II members; | ||||||
18 | (2) to study the impact of Public Acts 96-889 and | ||||||
19 | 96-1495 on the ability of retirements systems and pension | ||||||
20 | funds established under this Code to maintain qualified | ||||||
21 | plan status under the federal Internal Revenue Code and | ||||||
22 | other applicable laws; | ||||||
23 | (3) to examine the impact of the changes made by Public | ||||||
24 | Acts 96-889 and 96-1495 on the ability of public employers | ||||||
25 | to attract and retain highly qualified employees and | ||||||
26 | provide sufficient retirement security; and |
| |||||||
| |||||||
1 | (4) to make any recommendations regarding changes to | ||||||
2 | the pension benefits provided to Tier II employees the Task | ||||||
3 | Force deems necessary or advisable in order to: | ||||||
4 | (A) enhance the retirement security of Tier II | ||||||
5 | members; | ||||||
6 | (B) ensure that the various pension systems | ||||||
7 | maintain their status as qualified plans under the | ||||||
8 | federal Internal Revenue Code and other applicable | ||||||
9 | laws; and | ||||||
10 | (C) ensure that public employers in this State are | ||||||
11 | able to attract and retain highly qualified employees | ||||||
12 | and provide sufficient retirement security. | ||||||
13 | (d) The Commission on Governmental Forecasting and | ||||||
14 | Accountability shall provide administrative support to the | ||||||
15 | Task Force. | ||||||
16 | (e) The Task Force shall conduct a minimum of 4 public | ||||||
17 | hearings, with hearings in Springfield, Chicago, and at least | ||||||
18 | two other locations in Illinois as determined by the Task | ||||||
19 | Force. | ||||||
20 | (f) The Task Force shall issue its report to the General | ||||||
21 | Assembly no later than February 1, 2014. | ||||||
22 | (g) This Section is repealed on January 1, 2015. | ||||||
23 | (40 ILCS 5/1-162 new) | ||||||
24 | Sec. 1-162. Optional cash balance plan. | ||||||
25 | (a) Participation and Applicability. Beginning 12 months |
| |||||||
| |||||||
1 | after the effective date of this Section, any Tier I employee | ||||||
2 | who has made the election under
item (i) of paragraph (1) of | ||||||
3 | subsection (a) of Section 14-106.5, 15-132.9, or 16-122.9 may | ||||||
4 | elect to participate in the optional cash balance plan created | ||||||
5 | under this Section. | ||||||
6 | The Board of Trustees of the applicable retirement system | ||||||
7 | shall promulgate rules to establish a one-time irrevocable | ||||||
8 | election period wherein a person eligible to participate in the | ||||||
9 | optional cash balance plan may elect to participate. | ||||||
10 | (b) Title. The package of benefits provided under this | ||||||
11 | Section may be referred to as the "optional cash balance plan". | ||||||
12 | Persons subject to the provisions of this Section may be | ||||||
13 | referred to as "participants in the optional cash balance | ||||||
14 | plan". | ||||||
15 | (b-5) Definitions. As used in this Section: | ||||||
16 | "Account" means the notional cash balance account | ||||||
17 | established under this Section for a participant in the | ||||||
18 | optional cash balance plan. | ||||||
19 | "Salary" means "compensation" as defined in Article 14, | ||||||
20 | "earnings" as defined in Article 15, and "salary" as defined in | ||||||
21 | Article 16, whichever is applicable, without regard to the | ||||||
22 | limitation in subsection (b-5) of Section 1-160. | ||||||
23 | "Tier I employee" means a person who is a Tier I employee | ||||||
24 | under the applicable Article of this Code. | ||||||
25 | (c) Cash Balance Account. A notional cash balance account | ||||||
26 | shall be established by the applicable retirement system for |
| |||||||
| |||||||
1 | each participant in the optional cash balance plan. The account | ||||||
2 | is notional and does not contain any actual money segregated | ||||||
3 | from the commingled assets of the retirement system. The cash | ||||||
4 | balance in the account is to be used in calculating benefits as | ||||||
5 | provided in this Section, but is not to be used in the | ||||||
6 | calculation of any refund, transfer, or other benefit under the | ||||||
7 | applicable Article of this Code. | ||||||
8 | The amounts to be credited to the cash balance account | ||||||
9 | shall consist of (i) amounts contributed by or on behalf of the | ||||||
10 | participant as employee contributions, (ii) notional employer | ||||||
11 | contributions, and (iii) interest credit that is attributable | ||||||
12 | to the account, all as provided in this Section. | ||||||
13 | Whenever necessary for the prompt calculation or | ||||||
14 | administration, or when the System lacks information necessary | ||||||
15 | to the calculation or administration otherwise required of or | ||||||
16 | for a benefit under this Section, the applicable retirement | ||||||
17 | system may estimate an amount to be credited to or debited from | ||||||
18 | a participant's cash balance account and then adjust the amount | ||||||
19 | so credited or debited when more accurate information becomes | ||||||
20 | available. | ||||||
21 | The applicable retirement system shall give to each | ||||||
22 | participant in the optional cash balance plan who has not yet | ||||||
23 | retired annual notice of (1) the balance in the participant's | ||||||
24 | cash balance account and (2) an estimate of the retirement | ||||||
25 | annuity that will be payable to the participant if he or she | ||||||
26 | retires at age 59 1/2. |
| |||||||
| |||||||
1 | (d) Employee Contributions. In addition to the other | ||||||
2 | contributions required under the applicable Article, each | ||||||
3 | participant shall make contributions to the applicable | ||||||
4 | retirement system at the rate of 2% of each payment of salary. | ||||||
5 | The amount of each contribution shall be credited to the | ||||||
6 | participant's cash balance account upon receipt and after the | ||||||
7 | retirement system's reconciliation of the contribution. | ||||||
8 | (e) Optional Employer Contributions. Employers may make
| ||||||
9 | optional additional contributions to the applicable retirement | ||||||
10 | system on behalf of their employees who are participants in the | ||||||
11 | optional cash balance plan in accordance with procedures | ||||||
12 | prescribed by the retirement system, to
the extent permitted by | ||||||
13 | federal law and the rules prescribed by the retirement system. | ||||||
14 | The optional additional contributions under this subsection | ||||||
15 | are actual monetary contributions to the retirement system, and | ||||||
16 | the amount of each optional additional contribution shall be | ||||||
17 | credited to the participant's cash balance account upon receipt | ||||||
18 | and after the retirement system's reconciliation of the | ||||||
19 | contribution. | ||||||
20 | (f) Interest Credit. An amount representing earnings on | ||||||
21 | investments shall be determined by the retirement system in | ||||||
22 | accordance with this Section and credited to the participant's | ||||||
23 | cash balance account for each fiscal year in which there is a | ||||||
24 | positive balance in that account; except that no additional | ||||||
25 | interest credit shall be credited while an annuity based on the | ||||||
26 | account is being paid. The interest credit amount shall be a |
| |||||||
| |||||||
1 | percentage of the average quarterly balance in the cash balance | ||||||
2 | account during that fiscal year, and shall be calculated on | ||||||
3 | June 30. | ||||||
4 | The percentage shall be the assumed treasury rate for the | ||||||
5 | previous fiscal year, unless neither the retirement system's | ||||||
6 | actual rate of investment earnings for the previous fiscal year | ||||||
7 | nor the retirement system's actual rate of investment earnings | ||||||
8 | for the five-year period ending at the end of the previous | ||||||
9 | fiscal year is less than the assumed treasury rate. | ||||||
10 | If both the retirement system's actual rate of investment | ||||||
11 | earnings for the previous fiscal year and the actual rate of | ||||||
12 | investment earnings for the five-year period ending at the end | ||||||
13 | of the previous fiscal year are at least the assumed treasury | ||||||
14 | rate, then the percentage shall be: | ||||||
15 | (i) the assumed treasury rate, plus | ||||||
16 | (ii) two-thirds of the amount of the actual rate of | ||||||
17 | investment earnings for the previous fiscal year that | ||||||
18 | exceeds the assumed treasury rate. | ||||||
19 | However, in no event shall the percentage applied under this | ||||||
20 | subsection exceed 10%. | ||||||
21 | For the purposes of this subsection only, "previous fiscal | ||||||
22 | year" means fiscal year ending one year before the interest | ||||||
23 | rate is calculated. | ||||||
24 | For the purposes of this subsection only, "assumed treasury | ||||||
25 | rate" means the average annual yield of the 30-year U.S. | ||||||
26 | Treasury Bond over the previous fiscal year, but not less than |
| |||||||
| |||||||
1 | 4%. | ||||||
2 | When a person applies for a benefit under this Section, the | ||||||
3 | retirement system shall apply an interest credit based on a | ||||||
4 | proration of an estimate of what the interest credit will be | ||||||
5 | for the relevant year. When the retirement system certifies the | ||||||
6 | credit on June 30, it shall adjust the benefit accordingly. | ||||||
7 | (f-10) Distribution upon Termination of Employment. Upon | ||||||
8 | termination of active employment with at least 5 years of | ||||||
9 | service credit under the applicable retirement system and prior | ||||||
10 | to making application for an annuity under this Section, a | ||||||
11 | participant in the optional cash balance plan may make an | ||||||
12 | irrevocable election to distribute an amount not to exceed 40% | ||||||
13 | of the balance in the participant's account in the form of a | ||||||
14 | direct rollover to another qualified plan, to the extent | ||||||
15 | allowed by federal law. If the participant makes such an | ||||||
16 | election, then the amount distributed shall be debited from the | ||||||
17 | participant's cash balance account. A participant in the | ||||||
18 | optional cash balance plan shall be allowed only one | ||||||
19 | distribution under this subsection. The remaining balance in | ||||||
20 | the participant's account shall be used for the determination | ||||||
21 | of other benefits provided under this Section. | ||||||
22 | (f-15) Refund. In lieu of receiving a distribution under | ||||||
23 | subsection (f-10), at any time after terminating active | ||||||
24 | employment under the applicable retirement system, but before | ||||||
25 | receiving a retirement annuity under this Section, a | ||||||
26 | participant in the optional cash balance plan may elect to |
| |||||||
| |||||||
1 | receive a refund under this subsection. The refund shall | ||||||
2 | consist of an amount equal to the amount of all employee | ||||||
3 | contributions credited to the participant's account, but shall | ||||||
4 | not include any interest credit or employer contributions. If | ||||||
5 | the participant so requests, the refund may be paid in the form | ||||||
6 | of a direct rollover to another qualified plan, to the extent | ||||||
7 | allowed by federal law and in accordance with the rules of the | ||||||
8 | applicable retirement system. Upon payment of the refund, the | ||||||
9 | participant's notional cash balance account shall be closed. | ||||||
10 | (g) Retirement Annuity. A participant in the optional cash | ||||||
11 | balance plan may begin collecting a retirement annuity at age | ||||||
12 | 59 1/2, but no earlier than the date of termination of active | ||||||
13 | employment under the applicable retirement system. | ||||||
14 | The amount of the retirement annuity shall be calculated by | ||||||
15 | the retirement system, based on the balance in the cash balance | ||||||
16 | account, the assumption of future investment returns as | ||||||
17 | specified in this subsection, the participant's election to | ||||||
18 | have a lifetime survivor's annuity as specified in this | ||||||
19 | subsection, the annual increase in retirement annuity as | ||||||
20 | specified in subsection (h), the annual increase in survivor's | ||||||
21 | annuity as specified in subsection (l), and any actuarial | ||||||
22 | assumptions and tables adopted by the board of the retirement | ||||||
23 | system for this purpose. The calculation shall determine the | ||||||
24 | amount of retirement annuity, on an actuarially equivalent | ||||||
25 | basis, that shall be designed to result in the balance in the | ||||||
26 | participant's account arriving at zero on the date when the |
| |||||||
| |||||||
1 | last payment of the retirement annuity (or survivor's annuity, | ||||||
2 | if the participant elects to provide for a survivor's annuity | ||||||
3 | pursuant to this subsection) is anticipated to be paid under | ||||||
4 | the relevant actuarial assumptions. A retirement annuity or a | ||||||
5 | survivor's annuity provided under this Section shall be a life | ||||||
6 | annuity and shall not expire if the account balance equals | ||||||
7 | zero. | ||||||
8 | The annuity payment shall begin on the date specified by | ||||||
9 | the participant submitting a written application, which date | ||||||
10 | shall not be prior to termination of employment or more than | ||||||
11 | one year before the application is received by the board; | ||||||
12 | however, if the participant is not an employee of an employer | ||||||
13 | participating in this System or in a participating system as | ||||||
14 | defined in Article 20 of this Code on April 1 of the calendar | ||||||
15 | year next following the calendar year in which the participant | ||||||
16 | attains age 70 1/2, the annuity payment period shall begin on | ||||||
17 | that date regardless of whether an application has been filed. | ||||||
18 | The participant may elect, under the participant's written | ||||||
19 | application for retirement, to receive a reduced annuity | ||||||
20 | payable for his or her life and to have a lifetime survivor's | ||||||
21 | annuity in a monthly amount equal to 50%, 75%, or 100% of that | ||||||
22 | reduced monthly amount, to be paid after the participant's | ||||||
23 | death to his or her eligible survivor. Eligibility for a | ||||||
24 | survivor's annuity shall be determined under the applicable | ||||||
25 | Article of this Code. | ||||||
26 | For the purpose of calculating retirement annuities, |
| |||||||
| |||||||
1 | future investment returns shall be assumed to be a percentage | ||||||
2 | equal to the average yield of the 30-year U.S. Treasury Bond | ||||||
3 | over the 5 fiscal years prior to the calculation of the initial | ||||||
4 | retirement annuity, plus 250 basis points; but not less than 4% | ||||||
5 | nor more than 8%. | ||||||
6 | (h) Annual Increase in Retirement Annuity. The retirement | ||||||
7 | annuity shall be subject to an automatic annual increase in an | ||||||
8 | amount equal to 3% of the originally granted annuity on each | ||||||
9 | January 1 occurring on or after the first anniversary of the | ||||||
10 | annuity start date. | ||||||
11 | (i) Disability Benefits. There are no disability benefits | ||||||
12 | provided under the optional cash balance plan, and no amounts | ||||||
13 | for disability shall be deducted from the account of a | ||||||
14 | participant in the optional cash balance plan. The disability | ||||||
15 | benefits provided under the applicable retirement system apply | ||||||
16 | to participants in the optional cash balance plan. | ||||||
17 | (j) Return to Service. Upon a return to service under the | ||||||
18 | same retirement system after beginning to receive a retirement | ||||||
19 | annuity under the optional cash balance plan, the retirement | ||||||
20 | annuity shall be suspended and active participation in the | ||||||
21 | optional cash balance plan shall resume. Upon termination of | ||||||
22 | the employment, the retirement annuity shall resume in an | ||||||
23 | amount to be recalculated in accordance with subsection (g), | ||||||
24 | taking into effect the changes in the cash balance account. If | ||||||
25 | a retired annuitant returns to service, his or her notional | ||||||
26 | cash balance account shall be decreased by each payment of |
| |||||||
| |||||||
1 | retirement annuity prior to the return to service. | ||||||
2 | (k) Survivor's Annuity - Death before Retirement. In the | ||||||
3 | case of a participant in the optional cash balance plan who had | ||||||
4 | less than 5 years of service under the applicable Article and | ||||||
5 | had not begun receiving a retirement annuity, the eligible | ||||||
6 | survivor shall be entitled only to a refund of employee | ||||||
7 | contributions under subsection (f-15). | ||||||
8 | In the case of a participant in the optional cash balance | ||||||
9 | plan who had at least 5 years of service under the applicable | ||||||
10 | Article and had not begun receiving a retirement annuity, the | ||||||
11 | eligible survivor shall be entitled to receive a survivor's | ||||||
12 | annuity beginning at age 59 1/2 upon written application. The | ||||||
13 | survivor's annuity shall be calculated in the same manner as a | ||||||
14 | retirement annuity under subsection (g). At any time before | ||||||
15 | receiving a survivor's annuity, the eligible survivor may claim | ||||||
16 | a distribution under subsection (f-10) or a refund under | ||||||
17 | subsection (f-15). The deceased participant's account shall | ||||||
18 | continue to receive interest credit until the eligible survivor | ||||||
19 | begins to receive a survivor's annuity or receives a refund of | ||||||
20 | employee contributions under subsection (f-15). | ||||||
21 | Eligibility for a survivor's annuity shall be determined | ||||||
22 | under the applicable Article of this Code. A child's or | ||||||
23 | parent's annuity for an otherwise eligible child or dependent | ||||||
24 | parent shall be in the same amount, if any, prescribed under | ||||||
25 | the applicable Article. | ||||||
26 | (l) Annual Increase in Survivor's Annuity. A survivor's |
| |||||||
| |||||||
1 | annuity granted under subsection (g) or (k) shall be subject to | ||||||
2 | an automatic annual increase in an amount equal to 3% of the | ||||||
3 | originally granted annuity on each January 1 occurring on or | ||||||
4 | after the first anniversary of the annuity start date. | ||||||
5 | (m) Applicability of Provisions. The following provisions, | ||||||
6 | if and as they exist in this Code, do not apply to participants | ||||||
7 | in the optional cash balance plan with respect to participation | ||||||
8 | in the optional cash balance plan, except as they are | ||||||
9 | specifically provided for in this Section: | ||||||
10 | (1) minimum service or vesting requirements (other | ||||||
11 | than as provided in this Section); | ||||||
12 | (2) provisions limiting a retirement annuity to a | ||||||
13 | specified percentage of salary; | ||||||
14 | (3) provisions authorizing a minimum retirement or | ||||||
15 | survivor's annuity or a supplemental annuity; | ||||||
16 | (4) provisions authorizing any form of retirement | ||||||
17 | annuity or survivor's annuity not authorized under this | ||||||
18 | Section; | ||||||
19 | (5) provisions authorizing a reversionary annuity | ||||||
20 | (other than the survivor's annuity under subsection (g)); | ||||||
21 | (6) provisions authorizing a refund of employee | ||||||
22 | contributions upon termination of service (other than upon | ||||||
23 | the death of the participant without an eligible survivor) | ||||||
24 | or any lump-sum payout in lieu of a retirement or | ||||||
25 | survivor's annuity (other than the distribution under | ||||||
26 | subsection (f-10) or the refund under subsection (f-15) of |
| |||||||
| |||||||
1 | this Section; | ||||||
2 | (7) provisions authorizing optional service credits or | ||||||
3 | the payment of optional additional contributions (other | ||||||
4 | than the optional employer contributions specifically | ||||||
5 | authorized in this Section); or | ||||||
6 | (8) a level income option. | ||||||
7 | The Retirement Systems Reciprocal Act (Article 20 of this | ||||||
8 | Code) does not apply to participation in the optional cash | ||||||
9 | balance plan and does not affect the calculation of benefits | ||||||
10 | payable under this Section. | ||||||
11 | The other provisions of this Code continue to apply to | ||||||
12 | participants in the optional cash balance plan, to the extent | ||||||
13 | that they do not conflict with this Section. In the case of a | ||||||
14 | conflict between the provisions of this Section and any other | ||||||
15 | provision of this Code, the provisions of this Section control. | ||||||
16 | (n) Rules. The Board of Trustees of the applicable | ||||||
17 | retirement system may adopt rules and procedures for the | ||||||
18 | implementation of this Section, including but not limited to | ||||||
19 | determinations of how to integrate the administration of this | ||||||
20 | Section with the requirements of the applicable Article and any | ||||||
21 | other applicable provisions of this Code.
| ||||||
22 | (o) Actual Employer Contributions. Payment of employer | ||||||
23 | contributions with respect to participants in the optional cash | ||||||
24 | balance plan shall be the responsibility of the actual | ||||||
25 | employer. Optional additional contributions by employers may | ||||||
26 | be paid in any amount, but must be paid in the manner specified |
| |||||||
| |||||||
1 | by the applicable retirement system. | ||||||
2 | (p) Prospective Modification. The provisions set forth in | ||||||
3 | this Section are subject to prospective changes made by law | ||||||
4 | provided that any such changes shall not apply to any benefits | ||||||
5 | accrued under this Section prior to the effective date of any | ||||||
6 | amendatory Act of the General Assembly. | ||||||
7 | (q) Qualified Plan Status. No provision of this Section | ||||||
8 | shall be interpreted in a way that would cause the applicable | ||||||
9 | retirement system to cease to be a qualified plan under Section
| ||||||
10 | 401(a) of the Internal Revenue Code of 1986. | ||||||
11 | (40 ILCS 5/2-105.1 new) | ||||||
12 | Sec. 2-105.1. Tier I employee. "Tier I employee": A | ||||||
13 | participant who first became a participant before January 1, | ||||||
14 | 2011. | ||||||
15 | (40 ILCS 5/2-105.2 new) | ||||||
16 | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | ||||||
17 | former Tier I employee who is receiving a retirement annuity. | ||||||
18 | (40 ILCS 5/2-107.9 new) | ||||||
19 | Sec. 2-107.9. Future increase in income. "Future increase | ||||||
20 | in income": Any increase in income in any form offered for | ||||||
21 | service as a member under this Article after June 30, 2014 that | ||||||
22 | would qualify as "salary", as defined in Section 2-108, but for | ||||||
23 | the fact that the increase in income was offered to the member |
| |||||||
| |||||||
1 | on the condition that it not qualify as salary and was accepted | ||||||
2 | by the member subject to that condition.
| ||||||
3 | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| ||||||
4 | Sec. 2-108. Salary. "Salary": (1) For members of the | ||||||
5 | General Assembly,
the total compensation paid to the member by | ||||||
6 | the State for one
year of service, including the additional | ||||||
7 | amounts, if any, paid to
the member as an officer pursuant to | ||||||
8 | Section 1 of "An Act
in relation to the compensation and | ||||||
9 | emoluments of the members of the
General Assembly", approved | ||||||
10 | December 6, 1907, as now or hereafter
amended.
| ||||||
11 | (2) For the State executive officers specified
in Section | ||||||
12 | 2-105, the total compensation paid to the member for one year
| ||||||
13 | of service.
| ||||||
14 | (3) For members of the System who are participants under | ||||||
15 | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | ||||||
16 | of the House of
Representatives or Secretary or Assistant | ||||||
17 | Secretary of the Senate, the
total compensation paid to the | ||||||
18 | member for one year of service, but not to
exceed the salary of | ||||||
19 | the highest salaried officer of the General Assembly.
| ||||||
20 | However, in the event that federal law results in any | ||||||
21 | participant
receiving imputed income based on the value of | ||||||
22 | group term life insurance
provided by the State, such imputed | ||||||
23 | income shall not be included in salary
for the purposes of this | ||||||
24 | Article.
| ||||||
25 | Notwithstanding any other provision of this Section, |
| |||||||
| |||||||
1 | "salary" does not include any future increase in income that is | ||||||
2 | offered for service as a member under this Article pursuant to | ||||||
3 | the requirements of subsection (c) of Section 2-110.3 and | ||||||
4 | accepted by a Tier I employee, or a Tier I retiree returning to | ||||||
5 | active service, who has made the election under paragraph (2) | ||||||
6 | of subsection (a) or (a-5) of Section 2-110.3. | ||||||
7 | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
| ||||||
8 | (40 ILCS 5/2-110.3 new) | ||||||
9 | Sec. 2-110.3. Election by Tier I employees and Tier I | ||||||
10 | retirees. | ||||||
11 | (a) Each Tier I employee shall make an irrevocable election | ||||||
12 | either: | ||||||
13 | (1) to agree to item (i) or (ii) as set forth in this | ||||||
14 | paragraph (1): | ||||||
15 | (i) to have the amount of the automatic annual | ||||||
16 | increases in his or her retirement annuity that are | ||||||
17 | otherwise provided for in this Article calculated, | ||||||
18 | instead, as provided in subsection (a-1) of Section | ||||||
19 | 2-119.1, and to waive his or her eligibility for 2 | ||||||
20 | automatic annual increases in retirement annuity as | ||||||
21 | provided in subsection (a-2) of Section 2-119.1; or | ||||||
22 | (ii) to waive his or her eligibility for 3 | ||||||
23 | automatic annual increases in retirement annuity, as | ||||||
24 | provided in subsection (a-3) of Section 2-119.1, and to | ||||||
25 | make the contributions set forth in subsection (a-5) of |
| |||||||
| |||||||
1 | Section 2-126; or | ||||||
2 | (2) to not agree to item (i) or (ii) as set forth in | ||||||
3 | paragraph (1) of this subsection. | ||||||
4 | The election required under this subsection (a) shall be | ||||||
5 | made by each Tier I employee no earlier than February 1, 2014 | ||||||
6 | and no later than May 31, 2014, except that: | ||||||
7 | (i) a person who becomes a Tier I employee under this | ||||||
8 | Article on or after February 1, 2014 must make the election | ||||||
9 | under this subsection (a) within 60 days after becoming a | ||||||
10 | Tier I employee; | ||||||
11 | (ii) a person who returns to active service as a Tier I | ||||||
12 | employee under this Article on or after February 1, 2014 | ||||||
13 | and has not yet made an election under this Section must | ||||||
14 | make the election under this subsection (a) within 60 days | ||||||
15 | after returning to active service as a Tier I employee; and | ||||||
16 | (iii) a person who made the election under subsection | ||||||
17 | (a-5) as a Tier I retiree remains bound by that election | ||||||
18 | and shall not make a later election under this subsection | ||||||
19 | (a). | ||||||
20 | If a Tier I employee fails for any reason to make a | ||||||
21 | required election under this subsection within the time | ||||||
22 | specified, then the employee shall be deemed to have made the | ||||||
23 | election under paragraph (2) of this subsection. | ||||||
24 | (a-5) Each Tier I retiree shall make an irrevocable | ||||||
25 | election either: | ||||||
26 | (1) to agree to the following: |
| |||||||
| |||||||
1 | (i) to have the amount of the automatic annual | ||||||
2 | increases in his or her retirement annuity calculated | ||||||
3 | without regard to subsection (a-1), (a-2), or (a-3) of | ||||||
4 | Section 2-119.1; and | ||||||
5 | (ii) to waive his or her eligibility for 2 | ||||||
6 | automatic annual increases in retirement annuity as | ||||||
7 | provided in subsection (a-4) of Section 2-119.1; or | ||||||
8 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
9 | paragraph (1) of this subsection. | ||||||
10 | The election required under this subsection (a-5) shall be | ||||||
11 | made by each Tier I retiree no earlier than February 1, 2014 | ||||||
12 | and no later than May 31, 2014, except that: | ||||||
13 | (i) a person who becomes a Tier I retiree under this | ||||||
14 | Article on or after February 1, 2014 must make the election | ||||||
15 | under this subsection (a-5) within 60 days after becoming a | ||||||
16 | Tier I retiree; and | ||||||
17 | (ii) a person who made the election under subsection | ||||||
18 | (a) as a Tier I employee remains bound by that election and | ||||||
19 | shall not make a later election under this subsection | ||||||
20 | (a-5). | ||||||
21 | If a Tier I retiree fails for any reason to make a required | ||||||
22 | election under this subsection within the time specified, then | ||||||
23 | the Tier I retiree shall be deemed to have made the election | ||||||
24 | under paragraph (2) of this subsection. | ||||||
25 | (a-10) All elections under subsection (a) or (a-5) that are | ||||||
26 | made or deemed to be made before June 1, 2014 shall take effect |
| |||||||
| |||||||
1 | on July 1, 2014. Elections that are made or deemed to be made | ||||||
2 | on or after June 1, 2014 shall take effect on the first day of | ||||||
3 | the month following the month in which the election is made or | ||||||
4 | deemed to be made. | ||||||
5 | (b) As adequate and legal consideration provided under this | ||||||
6 | amendatory Act of the 98th General Assembly for making an | ||||||
7 | election under paragraph (1) of subsection (a) of this Section, | ||||||
8 | any future increases in income offered for service as a member | ||||||
9 | under this Article to a Tier I employee who has made an | ||||||
10 | election under paragraph (1) of subsection (a) of this Section | ||||||
11 | shall be offered expressly and irrevocably as constituting | ||||||
12 | salary under Section 2-108. | ||||||
13 | As adequate and legal consideration provided under this | ||||||
14 | amendatory Act of the 98th General Assembly for making an | ||||||
15 | election under paragraph (1) of subsection (a-5) of this | ||||||
16 | Section, any future increases in income offered for service as | ||||||
17 | a member under this Article to a Tier I retiree who returns to | ||||||
18 | active service after having made an election under paragraph | ||||||
19 | (1) of subsection (a-5) of this Section shall be offered | ||||||
20 | expressly and irrevocably as constituting salary under Section | ||||||
21 | 2-108. | ||||||
22 | (c) A Tier I employee who makes the election under | ||||||
23 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
24 | subject to either item (i) or (ii) set forth in paragraph (1) | ||||||
25 | of subsection (a) of this Section. However, any future | ||||||
26 | increases in income offered for service as a member under this |
| |||||||
| |||||||
1 | Article to a Tier I employee who has made the election under | ||||||
2 | paragraph (2) of subsection (a) of this Section shall be | ||||||
3 | offered expressly and irrevocably as not constituting salary | ||||||
4 | under Section 2-108, and the member may not accept any future | ||||||
5 | increase in income that is offered in violation of this | ||||||
6 | requirement. | ||||||
7 | A Tier I retiree who makes the election under paragraph (2) | ||||||
8 | of subsection (a-5) of this Section shall not be subject to | ||||||
9 | either item (i) or (ii) set forth in paragraph (1) of | ||||||
10 | subsection (a-5) of this Section. However, any future increases | ||||||
11 | in income offered for service as a member under this Article to | ||||||
12 | a Tier I retiree who returns to active service and has made the | ||||||
13 | election under paragraph (2) of subsection (a-5) of this | ||||||
14 | Section shall be offered expressly and irrevocably as not | ||||||
15 | constituting salary under Section 2-108, and the member may not | ||||||
16 | accept any future increase in income that is offered in | ||||||
17 | violation of this requirement. | ||||||
18 | (d) The System shall make a good faith effort to contact | ||||||
19 | each Tier I employee and Tier I retiree subject to this | ||||||
20 | Section. The System shall mail information describing the | ||||||
21 | required election to each Tier I employee and Tier I retiree by | ||||||
22 | United States Postal Service mail to his or her last known | ||||||
23 | address on file with the System. If the Tier I employee or Tier | ||||||
24 | I retiree is not responsive to other means of contact, it is | ||||||
25 | sufficient for the System to publish the details of any | ||||||
26 | required elections on its website or to publish those details |
| |||||||
| |||||||
1 | in a regularly published newsletter or other existing public | ||||||
2 | forum. | ||||||
3 | Tier I employees and Tier I retirees who are subject to | ||||||
4 | this Section shall be provided with an election packet | ||||||
5 | containing information regarding their options, as well as the | ||||||
6 | forms necessary to make the required election. Upon request, | ||||||
7 | the System shall offer Tier I employees and Tier I retirees an | ||||||
8 | opportunity to receive information from the System before | ||||||
9 | making the required election. The information may be provided | ||||||
10 | through video materials, group presentations, individual | ||||||
11 | consultation with a member or authorized representative of the | ||||||
12 | System in person or by telephone or other electronic means, or | ||||||
13 | any combination of those methods. The System shall not provide | ||||||
14 | advice or counseling with respect to which election a Tier I | ||||||
15 | employee or Tier I retiree should make or specific to the legal | ||||||
16 | or tax circumstances of or consequences to the Tier I employee | ||||||
17 | or Tier I retiree. | ||||||
18 | The System shall inform Tier I employees and Tier I | ||||||
19 | retirees in the election packet required under this subsection | ||||||
20 | that the Tier I employee or Tier I retiree may also wish to | ||||||
21 | obtain information and counsel relating to the election | ||||||
22 | required under this Section from any other available source, | ||||||
23 | including but not limited to labor organizations and private | ||||||
24 | counsel. | ||||||
25 | In no event shall the System, its staff, or the Board be | ||||||
26 | held liable for any information given to a member, beneficiary, |
| |||||||
| |||||||
1 | or annuitant regarding the elections under this Section. The | ||||||
2 | System shall coordinate with the Illinois Department of Central | ||||||
3 | Management Services and each other retirement system | ||||||
4 | administering an election in accordance with this amendatory | ||||||
5 | Act of the 98th General Assembly to provide information | ||||||
6 | concerning the impact of the election set forth in this | ||||||
7 | Section. | ||||||
8 | (e) Notwithstanding any other provision of law, any future | ||||||
9 | increases in income offered for service as a member must be | ||||||
10 | offered expressly and irrevocably as not constituting "salary" | ||||||
11 | under Section 2-108 to any Tier I employee, or Tier I retiree | ||||||
12 | returning to active service, who has made an election under | ||||||
13 | paragraph (2) of subsection (a) or (a-5) of Section 2-110.3. A | ||||||
14 | Tier I employee, or Tier I retiree returning to active service, | ||||||
15 | who has made an election under paragraph (2) or subsection (a) | ||||||
16 | or (a-5) of Section 2-110.3 shall not accept any future | ||||||
17 | increase in income that is offered for service as a member | ||||||
18 | under this Article in violation of the requirement set forth in | ||||||
19 | this subsection. | ||||||
20 | (f) A member's election under this Section is not a | ||||||
21 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
22 | of this Code. | ||||||
23 | (g) No provision of this Section shall be interpreted in a | ||||||
24 | way that would cause the System to cease to be a qualified plan | ||||||
25 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
26 | (h) If this Section is determined to be unconstitutional or |
| |||||||
| |||||||
1 | otherwise invalid by a final unappealable decision of an | ||||||
2 | Illinois court or a court of competent jurisdiction as applied | ||||||
3 | to Tier I employees but not as applied to Tier I retirees, then | ||||||
4 | this Section and the changes deriving from the election | ||||||
5 | required under this Section shall be null and void as applied | ||||||
6 | to Tier I employees but shall remain in full effect for Tier I | ||||||
7 | retirees. | ||||||
8 | (i) If this Section is determined to be unconstitutional or | ||||||
9 | otherwise invalid by a final unappealable decision of an | ||||||
10 | Illinois court or a court of competent jurisdiction as applied | ||||||
11 | to Tier I retirees but not as applied to Tier I employees, then | ||||||
12 | this Section and the changes deriving from the election | ||||||
13 | required under this Section shall be null and void as applied | ||||||
14 | to Tier I retirees but shall remain in full effect for Tier I | ||||||
15 | employees. | ||||||
16 | (j) If an election created by this amendatory Act in any | ||||||
17 | other Article of this Code or any change deriving from that | ||||||
18 | election is determined to be unconstitutional or otherwise | ||||||
19 | invalid by a final unappealable decision of an Illinois court | ||||||
20 | or a court of competent jurisdiction, the invalidity of that | ||||||
21 | provision shall not in any way affect the validity of this | ||||||
22 | Section or the changes deriving from the election required | ||||||
23 | under this Section.
| ||||||
24 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| ||||||
25 | Sec. 2-119.1. Automatic increase in retirement annuity.
|
| |||||||
| |||||||
1 | (a) Except as provided in subsections (a-1), (a-2), (a-3), | ||||||
2 | and (a-4), a A participant who retires after June 30, 1967, and | ||||||
3 | who has not
received an initial increase under this Section | ||||||
4 | before the effective date
of this amendatory Act of 1991, | ||||||
5 | shall, in January or July next following
the first anniversary | ||||||
6 | of retirement, whichever occurs first, and in the same
month of | ||||||
7 | each year thereafter, but in no event prior to age 60, have the | ||||||
8 | amount
of the originally granted retirement annuity increased | ||||||
9 | as follows: for each
year through 1971, 1 1/2%; for each year | ||||||
10 | from 1972 through 1979, 2%; and for
1980 and each year | ||||||
11 | thereafter, 3%. Annuitants who have received an initial
| ||||||
12 | increase under this subsection prior to the effective date of | ||||||
13 | this amendatory
Act of 1991 shall continue to receive their | ||||||
14 | annual increases in the same month
as the initial increase.
| ||||||
15 | (a-1) Notwithstanding any other provision of this Article, | ||||||
16 | for a Tier I employee who made the election under item (i) of | ||||||
17 | paragraph (1) of subsection (a) of Section 2-110.3, the amount | ||||||
18 | of each automatic annual increase in retirement annuity | ||||||
19 | occurring on or after the effective date of that election, | ||||||
20 | other than the initial increase, shall be 3% of the originally | ||||||
21 | granted retirement annuity. | ||||||
22 | (a-2) Notwithstanding any other provision of this Article, | ||||||
23 | for a Tier I employee who made the election under item (i) of | ||||||
24 | paragraph (1) of subsection (a) of Section 2-110.3, once the | ||||||
25 | first annual increase under this Section has been granted, the | ||||||
26 | next 2 scheduled annual increases shall be skipped, and |
| |||||||
| |||||||
1 | thereafter all annual increases shall be granted. | ||||||
2 | (a-3) Notwithstanding any other provision of this Article, | ||||||
3 | for a Tier I employee who made the election under item (ii) of | ||||||
4 | paragraph (1) of subsection (a) of Section 2-110.3, once the | ||||||
5 | first annual increase under this Section has been granted, the | ||||||
6 | next 3 scheduled annual increases shall be skipped, and | ||||||
7 | thereafter all annual increases shall be granted. | ||||||
8 | (a-4) Notwithstanding any other provision of this Article, | ||||||
9 | for a Tier I retiree who made the election under paragraph (1) | ||||||
10 | of subsection (a-5) of Section 2-110.3: | ||||||
11 | (1) if the Tier I retiree has not received the first | ||||||
12 | annual increase under this Section as of the effective date | ||||||
13 | of this amendatory Act of the 98th General Assembly, then | ||||||
14 | once the first annual increase under this Section has been | ||||||
15 | granted, the next scheduled annual increase shall be | ||||||
16 | skipped, the following annual increase shall be granted, | ||||||
17 | the next annual increase shall be skipped, and thereafter | ||||||
18 | all annual increases shall be granted; and | ||||||
19 | (2) if the Tier I retiree has received the first annual | ||||||
20 | increase under this Section as of the effective date of | ||||||
21 | this amendatory Act of the 98th General Assembly, then the | ||||||
22 | next annual increase after that effective date shall be | ||||||
23 | skipped, the following annual increase shall be granted, | ||||||
24 | the next annual increase shall be skipped, and thereafter | ||||||
25 | all annual increases shall be granted. | ||||||
26 | (b) Beginning January 1, 1990, for eligible participants |
| |||||||
| |||||||
1 | who remain
in service after attaining 20 years of creditable | ||||||
2 | service, the 3% increases
provided under subsection (a) shall | ||||||
3 | begin to accrue on the January 1 next
following the date upon | ||||||
4 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
5 | years of creditable service, whichever occurs later, and shall
| ||||||
6 | continue to accrue while the participant remains in service; | ||||||
7 | such increases
shall become payable on January 1 or July 1, | ||||||
8 | whichever occurs first, next
following the first anniversary of | ||||||
9 | retirement. For any person who has service
credit in the System | ||||||
10 | for the entire period from January 15, 1969 through
December | ||||||
11 | 31, 1992, regardless of the date of termination of service, the
| ||||||
12 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
13 | be deemed to
mean age 50.
| ||||||
14 | This subsection (b) does not apply to any person who first | ||||||
15 | becomes a
member of the System after August 8, 2003 ( the | ||||||
16 | effective date of Public Act 93-494) this amendatory Act of
the | ||||||
17 | 93rd General Assembly .
| ||||||
18 | (b-5) Notwithstanding any other provision of this Article, | ||||||
19 | a participant who first becomes a participant on or after | ||||||
20 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
21 | shall, in January or July next following the first anniversary | ||||||
22 | of retirement, whichever occurs first, and in the same month of | ||||||
23 | each year thereafter, but in no event prior to age 67, have the | ||||||
24 | amount of the retirement annuity then being paid increased by | ||||||
25 | 3% or the annual unadjusted percentage increase in the Consumer | ||||||
26 | Price Index for All Urban Consumers as determined by the Public |
| |||||||
| |||||||
1 | Pension Division of the Department of Insurance under | ||||||
2 | subsection (a) of Section 2-108.1, whichever is less. | ||||||
3 | (c) The foregoing provisions relating to automatic | ||||||
4 | increases are not
applicable to a participant who retires | ||||||
5 | before having made contributions
(at the rate prescribed in | ||||||
6 | Section 2-126) for automatic increases for less
than the | ||||||
7 | equivalent of one full year. However, in order to be eligible | ||||||
8 | for
the automatic increases, such a participant may make | ||||||
9 | arrangements to pay
to the system the amount required to bring | ||||||
10 | the total contributions for the
automatic increase to the | ||||||
11 | equivalent of one year's contributions based upon
his or her | ||||||
12 | last salary.
| ||||||
13 | (d) A participant who terminated service prior to July 1, | ||||||
14 | 1967, with at
least 14 years of service is entitled to an | ||||||
15 | increase in retirement annuity
beginning January, 1976, and to | ||||||
16 | additional increases in January of each
year thereafter , except | ||||||
17 | as otherwise provided in subsection (a-2), (a-3), or (a-4) .
| ||||||
18 | The initial increase shall be 1 1/2% of the originally | ||||||
19 | granted retirement
annuity multiplied by the number of full | ||||||
20 | years that the annuitant was in
receipt of such annuity prior | ||||||
21 | to January 1, 1972, plus 2% of the originally
granted | ||||||
22 | retirement annuity for each year after that date. The | ||||||
23 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
24 | originally granted
retirement annuity for each year through | ||||||
25 | 1979 and at the rate of 3% for
1980 and thereafter.
| ||||||
26 | (e) Beginning January 1, 1990, and except as provided in |
| |||||||
| |||||||
1 | subsection (a-1) or (b-5), all automatic annual increases | ||||||
2 | payable
under this Section shall be calculated as a percentage | ||||||
3 | of the total annuity
payable at the time of the increase, | ||||||
4 | including previous increases granted
under this Article.
| ||||||
5 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
6 | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
| ||||||
7 | Sec. 2-125. Obligations of State ; funding guarantee . | ||||||
8 | (a) The payment of (1) the required State contributions, | ||||||
9 | (2) all benefits
granted under this system and (3) all expenses | ||||||
10 | of administration and
operation are obligations of the State to | ||||||
11 | the extent specified in this
Article.
| ||||||
12 | All income, interest and dividends derived from deposits | ||||||
13 | and investments
shall be credited to the account of the system | ||||||
14 | in the State Treasury and
used to pay benefits under this | ||||||
15 | Article.
| ||||||
16 | (b) The State shall be contractually obligated to | ||||||
17 | contribute to the System in each State fiscal year an amount | ||||||
18 | not less than the sum required in Section 2-124 as that Section | ||||||
19 | existed prior to the effective date of this amendatory Act of | ||||||
20 | the 98th General Assembly. | ||||||
21 | The obligations created under this subsection (b) are | ||||||
22 | contractual obligations protected and enforceable under | ||||||
23 | Article I, Section 16 and Article XIII, Section 5 of the | ||||||
24 | Illinois Constitution. | ||||||
25 | Notwithstanding any other provision of law, if the State |
| |||||||
| |||||||
1 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
2 | this subsection (b), the System may bring a mandamus action in | ||||||
3 | the Circuit Court of Sangamon County to compel the State to | ||||||
4 | make that payment, irrespective of other remedies that
may be | ||||||
5 | available to the System. It shall be the mandatory fiduciary | ||||||
6 | obligation of the Board of the System to bring that action if | ||||||
7 | the State fails to pay in the fiscal year the amount guaranteed | ||||||
8 | under this subsection (b). Before commencing that action, the | ||||||
9 | Board shall submit a voucher for contributions required under | ||||||
10 | Section 2-134. If the State fails to pay a vouchered amount | ||||||
11 | within 90 days after receiving a voucher for that amount, then | ||||||
12 | the Board shall submit a written request to the Comptroller | ||||||
13 | seeking payment of that amount. A copy of the request shall be | ||||||
14 | filed with the Secretary of State, and the Secretary of State | ||||||
15 | shall provide copies of the request to the Governor and General | ||||||
16 | Assembly. No earlier than the 16th day after filing a request | ||||||
17 | with the Secretary, but no later than the 21st day after filing | ||||||
18 | that request, the Board may commence such an action in the | ||||||
19 | Circuit Court. If the Board fails to commence such action on or | ||||||
20 | before the 21st day after filing the request with the Secretary | ||||||
21 | of State, then any Tier I employee or Tier I retiree who made | ||||||
22 | an election under paragraph (1) of subsection (a) or (a-5) of | ||||||
23 | Section 2-110.3 may file a mandamus action against the Board to | ||||||
24 | compel the Board to commence its mandamus action against the | ||||||
25 | State. This subsection (b) constitutes an express waiver of the | ||||||
26 | State's sovereign immunity. In ordering the State to make the |
| |||||||
| |||||||
1 | required payment, the court may order a reasonable payment | ||||||
2 | schedule to enable the State to make the required payment. The | ||||||
3 | obligations and causes of action created under this subsection | ||||||
4 | (b) shall be in addition to any other right or remedy otherwise | ||||||
5 | accorded by common law, or State or federal law, and nothing in | ||||||
6 | this subsection (b) shall be construed to deny, abrogate, | ||||||
7 | impair, or waive any such common law or statutory right or | ||||||
8 | remedy. | ||||||
9 | Any payments required to be made by the State pursuant to | ||||||
10 | this subsection (b) are expressly subordinated to the payment | ||||||
11 | of the principal, interest, and premium, if any, on any
bonded | ||||||
12 | debt obligation of the State or any other State-created entity, | ||||||
13 | either currently outstanding or to
be issued, for which the | ||||||
14 | source of repayment or security thereon is derived directly or | ||||||
15 | indirectly from
tax revenues collected by the State or any | ||||||
16 | other State-created entity. Payments on such bonded
| ||||||
17 | obligations include any statutory fund transfers or other | ||||||
18 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
19 | in State law or bond indentures, into debt service funds or | ||||||
20 | accounts of the State
related to such bonded obligations, | ||||||
21 | consistent with the payment schedules associated with such
| ||||||
22 | obligations. | ||||||
23 | (Source: P.A. 83-1440.)
| ||||||
24 | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| ||||||
25 | Sec. 2-126. Contributions by participants.
|
| |||||||
| |||||||
1 | (a) Each participant shall contribute toward the cost of | ||||||
2 | his or her
retirement annuity a percentage of each payment of | ||||||
3 | salary received by him or
her for service as a member as | ||||||
4 | follows: for service between October 31, 1947
and January 1, | ||||||
5 | 1959, 5%; for service between January 1, 1959 and June 30, | ||||||
6 | 1969,
6%; for service between July 1, 1969 and January 10, | ||||||
7 | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | ||||||
8 | service after December 31, 1981, 8 1/2%.
| ||||||
9 | (a-5) In addition to the contributions otherwise required | ||||||
10 | under this Article, each Tier I employee who made the election | ||||||
11 | under item (ii) of paragraph (1) of subsection (a) of Section | ||||||
12 | 2-110.3 shall also make the following contributions toward the | ||||||
13 | cost of his or her retirement annuity from each payment
of | ||||||
14 | salary received by him or her for service as a member: | ||||||
15 | (1) beginning July 1, 2014 and through June 30, 2015, | ||||||
16 | 1% of salary; and | ||||||
17 | (2) beginning on July 1, 2015, 2% of salary. | ||||||
18 | (b) Beginning August 2, 1949, each male participant, and | ||||||
19 | from July 1,
1971, each female participant shall contribute | ||||||
20 | towards the cost of the
survivor's annuity 2% of salary.
| ||||||
21 | A participant who has no eligible survivor's annuity | ||||||
22 | beneficiary may elect
to cease making contributions for | ||||||
23 | survivor's annuity under this subsection.
A survivor's annuity | ||||||
24 | shall not be payable upon the death of a person who has
made | ||||||
25 | this election, unless prior to that death the election has been | ||||||
26 | revoked
and the amount of the contributions that would have |
| |||||||
| |||||||
1 | been paid under this
subsection in the absence of the election | ||||||
2 | is paid to the System, together
with interest at the rate of 4% | ||||||
3 | per year from the date the contributions
would have been made | ||||||
4 | to the date of payment.
| ||||||
5 | (c) Beginning July 1, 1967, each participant shall | ||||||
6 | contribute 1% of
salary towards the cost of automatic increase | ||||||
7 | in annuity provided in
Section 2-119.1. These contributions | ||||||
8 | shall be made concurrently with
contributions for retirement | ||||||
9 | annuity purposes.
| ||||||
10 | (d) In addition, each participant serving as an officer of | ||||||
11 | the General
Assembly shall contribute, for the same purposes | ||||||
12 | and at the same rates
as are required of a regular participant, | ||||||
13 | on each additional payment
received as an officer. If the | ||||||
14 | participant serves as an
officer for at least 2 but less than 4 | ||||||
15 | years, he or she shall
contribute an amount equal to the amount | ||||||
16 | that would have been contributed
had the participant served as | ||||||
17 | an officer for 4 years. Persons who serve
as officers in the | ||||||
18 | 87th General Assembly but cannot receive the additional
payment | ||||||
19 | to officers because of the ban on increases in salary during | ||||||
20 | their
terms may nonetheless make contributions based on those | ||||||
21 | additional payments
for the purpose of having the additional | ||||||
22 | payments included in their highest
salary for annuity purposes; | ||||||
23 | however, persons electing to make these
additional | ||||||
24 | contributions must also pay an amount representing the
| ||||||
25 | corresponding employer contributions, as calculated by the | ||||||
26 | System.
|
| |||||||
| |||||||
1 | (e) Notwithstanding any other provision of this Article, | ||||||
2 | the required contribution of a participant shall not be based | ||||||
3 | on any salary in excess of the salary limitation applicable to | ||||||
4 | that participant under Section 2-108 or who first becomes a | ||||||
5 | participant on or after January 1, 2011 shall not exceed the | ||||||
6 | contribution that would be due under this Article if that | ||||||
7 | participant's highest salary for annuity purposes were | ||||||
8 | $106,800, plus any increases in that amount under Section | ||||||
9 | 2-108.1. | ||||||
10 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
11 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
12 | Sec. 2-134. To certify required State contributions and | ||||||
13 | submit vouchers.
| ||||||
14 | (a) The Board shall certify to the Governor on or before | ||||||
15 | December 15 of each
year through until December 15, 2011 the | ||||||
16 | amount of the required State contribution to the System for the | ||||||
17 | next
fiscal year and shall specifically identify the System's | ||||||
18 | projected State normal cost for that fiscal year . The | ||||||
19 | certification under this subsection (a) shall include a copy of | ||||||
20 | the actuarial
recommendations upon which it is based and shall | ||||||
21 | specifically identify the System's projected State normal cost | ||||||
22 | for that fiscal year .
| ||||||
23 | (a-5) On or before November 1 of each year, beginning | ||||||
24 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
25 | the Governor, and the General Assembly a proposed certification |
| |||||||
| |||||||
1 | of the amount of the required State contribution to the System | ||||||
2 | for the next fiscal year, along with all of the actuarial | ||||||
3 | assumptions, calculations, and data upon which that proposed | ||||||
4 | certification is based. On or before January 1 of each year , | ||||||
5 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
6 | preliminary report concerning the proposed certification and | ||||||
7 | identifying, if necessary, recommended changes in actuarial | ||||||
8 | assumptions that the Board must consider before finalizing its | ||||||
9 | certification of the required State contributions. | ||||||
10 | On or before January 15, 2013 and every January 15 | ||||||
11 | thereafter, the Board shall certify to the Governor and the | ||||||
12 | General Assembly the amount of the required State contribution | ||||||
13 | for the next fiscal year. The certification shall include a | ||||||
14 | copy of the actuarial
recommendations upon which it is based | ||||||
15 | and shall specifically identify the System's projected State | ||||||
16 | normal cost for that fiscal year. The Board's certification | ||||||
17 | must note any deviations from the State Actuary's recommended | ||||||
18 | changes, the reason or reasons for not following the State | ||||||
19 | Actuary's recommended changes, and the fiscal impact of not | ||||||
20 | following the State Actuary's recommended changes on the | ||||||
21 | required State contribution. | ||||||
22 | (a-7) On or before May 1, 2004, the Board shall recalculate | ||||||
23 | and recertify to
the Governor the amount of the required State | ||||||
24 | contribution to the System for
State fiscal year 2005, taking | ||||||
25 | into account the amounts appropriated to and
received by the | ||||||
26 | System under subsection (d) of Section 7.2 of the General
|
| |||||||
| |||||||
1 | Obligation Bond Act.
| ||||||
2 | On or before July 1, 2005, the Board shall recalculate and | ||||||
3 | recertify
to the Governor the amount of the required State
| ||||||
4 | contribution to the System for State fiscal year 2006, taking | ||||||
5 | into account the changes in required State contributions made | ||||||
6 | by this amendatory Act of the 94th General Assembly.
| ||||||
7 | On or before April 1, 2011, the Board shall recalculate and | ||||||
8 | recertify to the Governor the amount of the required State | ||||||
9 | contribution to the System for State fiscal year 2011, applying | ||||||
10 | the changes made by Public Act 96-889 to the System's assets | ||||||
11 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
12 | was approved on that date. | ||||||
13 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
14 | possible after the
15th day of each month the Board shall | ||||||
15 | submit vouchers for payment of State
contributions to the | ||||||
16 | System, in a total monthly amount of one-twelfth of the
| ||||||
17 | required annual State contribution certified under subsection | ||||||
18 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
19 | General Assembly through June 30, 2004, the Board shall not
| ||||||
20 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
21 | of the
fiscal year 2004 certified contribution amount | ||||||
22 | determined
under this Section after taking into consideration | ||||||
23 | the transfer to the
System under subsection (d) of Section | ||||||
24 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
25 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
26 | funds appropriated to the System for that fiscal year. If in |
| |||||||
| |||||||
1 | any month
the amount remaining unexpended from all other | ||||||
2 | appropriations to the System for
the applicable fiscal year | ||||||
3 | (including the appropriations to the System under
Section 8.12 | ||||||
4 | of the State Finance Act and Section 1 of the State Pension | ||||||
5 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
6 | lawfully vouchered under
this Section, the difference shall be | ||||||
7 | paid from the General Revenue Fund under
the continuing | ||||||
8 | appropriation authority provided in Section 1.1 of the State
| ||||||
9 | Pension Funds Continuing Appropriation Act.
| ||||||
10 | (c) The full amount of any annual appropriation for the | ||||||
11 | System for
State fiscal year 1995 shall be transferred and made | ||||||
12 | available to the System
at the beginning of that fiscal year at | ||||||
13 | the request of the Board.
Any excess funds remaining at the end | ||||||
14 | of any fiscal year from appropriations
shall be retained by the | ||||||
15 | System as a general reserve to meet the System's
accrued | ||||||
16 | liabilities.
| ||||||
17 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
18 | 97-694, eff. 6-18-12.)
| ||||||
19 | (40 ILCS 5/2-162)
| ||||||
20 | Sec. 2-162. Application and expiration of new benefit | ||||||
21 | increases. | ||||||
22 | (a) As used in this Section, "new benefit increase" means | ||||||
23 | an increase in the amount of any benefit provided under this | ||||||
24 | Article, or an expansion of the conditions of eligibility for | ||||||
25 | any benefit under this Article, that results from an amendment |
| |||||||
| |||||||
1 | to this Code that takes effect after the effective date of this | ||||||
2 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
3 | increase", however, does not include any benefit increase | ||||||
4 | resulting from the changes made to this Article by this | ||||||
5 | amendatory Act of the 98th General Assembly. | ||||||
6 | (b) Notwithstanding any other provision of this Code or any | ||||||
7 | subsequent amendment to this Code, every new benefit increase | ||||||
8 | is subject to this Section and shall be deemed to be granted | ||||||
9 | only in conformance with and contingent upon compliance with | ||||||
10 | the provisions of this Section.
| ||||||
11 | (c) The Public Act enacting a new benefit increase must | ||||||
12 | identify and provide for payment to the System of additional | ||||||
13 | funding at least sufficient to fund the resulting annual | ||||||
14 | increase in cost to the System as it accrues. | ||||||
15 | Every new benefit increase is contingent upon the General | ||||||
16 | Assembly providing the additional funding required under this | ||||||
17 | subsection. The Commission on Government Forecasting and | ||||||
18 | Accountability shall analyze whether adequate additional | ||||||
19 | funding has been provided for the new benefit increase and | ||||||
20 | shall report its analysis to the Public Pension Division of the | ||||||
21 | Department of Financial and Professional Regulation. A new | ||||||
22 | benefit increase created by a Public Act that does not include | ||||||
23 | the additional funding required under this subsection is null | ||||||
24 | and void. If the Public Pension Division determines that the | ||||||
25 | additional funding provided for a new benefit increase under | ||||||
26 | this subsection is or has become inadequate, it may so certify |
| |||||||
| |||||||
1 | to the Governor and the State Comptroller and, in the absence | ||||||
2 | of corrective action by the General Assembly, the new benefit | ||||||
3 | increase shall expire at the end of the fiscal year in which | ||||||
4 | the certification is made.
| ||||||
5 | (d) Every new benefit increase shall expire 5 years after | ||||||
6 | its effective date or on such earlier date as may be specified | ||||||
7 | in the language enacting the new benefit increase or provided | ||||||
8 | under subsection (c). This does not prevent the General | ||||||
9 | Assembly from extending or re-creating a new benefit increase | ||||||
10 | by law. | ||||||
11 | (e) Except as otherwise provided in the language creating | ||||||
12 | the new benefit increase, a new benefit increase that expires | ||||||
13 | under this Section continues to apply to persons who applied | ||||||
14 | and qualified for the affected benefit while the new benefit | ||||||
15 | increase was in effect and to the affected beneficiaries and | ||||||
16 | alternate payees of such persons, but does not apply to any | ||||||
17 | other person, including without limitation a person who | ||||||
18 | continues in service after the expiration date and did not | ||||||
19 | apply and qualify for the affected benefit while the new | ||||||
20 | benefit increase was in effect.
| ||||||
21 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
22 | (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
| ||||||
23 | Sec. 7-109. Employee.
| ||||||
24 | (1) "Employee" means any person who:
| ||||||
25 | (a) 1. Receives earnings as payment for the performance |
| |||||||
| |||||||
1 | of personal
services or official duties out of the | ||||||
2 | general fund of a municipality,
or out of any special | ||||||
3 | fund or funds controlled by a municipality, or by
an | ||||||
4 | instrumentality thereof, or a participating | ||||||
5 | instrumentality, including,
in counties, the fees or | ||||||
6 | earnings of any county fee office; and
| ||||||
7 | 2. Under the usual common law rules applicable in | ||||||
8 | determining the
employer-employee relationship, has | ||||||
9 | the status of an employee with a
municipality, or any | ||||||
10 | instrumentality thereof, or a participating
| ||||||
11 | instrumentality, including aldermen, county | ||||||
12 | supervisors and other
persons (excepting those | ||||||
13 | employed as independent contractors) who are
paid | ||||||
14 | compensation, fees, allowances or other emolument for | ||||||
15 | official
duties, and, in counties, the several county | ||||||
16 | fee offices.
| ||||||
17 | (b) Serves as a township treasurer appointed under the | ||||||
18 | School
Code, as heretofore or hereafter amended, and
who | ||||||
19 | receives for such services regular compensation as | ||||||
20 | distinguished
from per diem compensation, and any regular | ||||||
21 | employee in the office of
any township treasurer whether or | ||||||
22 | not his earnings are paid from the
income of the permanent | ||||||
23 | township fund or from funds subject to
distribution to the | ||||||
24 | several school districts and parts of school
districts as | ||||||
25 | provided in the School Code, or from both such sources; or | ||||||
26 | is the chief executive officer, chief educational officer, |
| |||||||
| |||||||
1 | chief fiscal officer, or other employee of a Financial | ||||||
2 | Oversight Panel established pursuant to Article 1H of the | ||||||
3 | School Code, other than a superintendent or certified | ||||||
4 | school business official, except that such person shall not | ||||||
5 | be treated as an employee under this Section if that person | ||||||
6 | has negotiated with the Financial Oversight Panel, in | ||||||
7 | conjunction with the school district, a contractual | ||||||
8 | agreement for exclusion from this Section.
| ||||||
9 | (c) Holds an elective office in a municipality, | ||||||
10 | instrumentality
thereof or participating instrumentality.
| ||||||
11 | (2) "Employee" does not include persons who:
| ||||||
12 | (a) Are eligible for inclusion under any of the | ||||||
13 | following laws:
| ||||||
14 | 1. "An Act in relation to an Illinois State | ||||||
15 | Teachers' Pension and
Retirement Fund", approved May | ||||||
16 | 27, 1915, as amended;
| ||||||
17 | 2. Articles 15 and 16 of this Code.
| ||||||
18 | However, such persons shall be included as employees to | ||||||
19 | the extent of
earnings that are not eligible for inclusion | ||||||
20 | under the foregoing laws
for services not of an | ||||||
21 | instructional nature of any kind.
| ||||||
22 | However, any member of the armed forces who is employed | ||||||
23 | as a teacher
of subjects in the Reserve Officers Training | ||||||
24 | Corps of any school and who
is not certified under the law | ||||||
25 | governing the certification of teachers
shall be included | ||||||
26 | as an employee.
|
| |||||||
| |||||||
1 | (b) Are designated by the governing body of a | ||||||
2 | municipality in which a
pension fund is required by law to | ||||||
3 | be established for policemen or
firemen, respectively, as | ||||||
4 | performing police or fire protection duties,
except that | ||||||
5 | when such persons are the heads of the police or fire
| ||||||
6 | department and are not eligible to be included within any | ||||||
7 | such pension
fund, they shall be included within this | ||||||
8 | Article; provided, that such
persons shall not be excluded | ||||||
9 | to the extent of concurrent service and
earnings not | ||||||
10 | designated as being for police or fire protection duties.
| ||||||
11 | However, (i) any head of a police department who was a | ||||||
12 | participant under this
Article immediately before October | ||||||
13 | 1, 1977 and did not elect, under Section
3-109 of this Act, | ||||||
14 | to participate in a police pension fund shall be an
| ||||||
15 | "employee", and (ii) any chief of police who elects to | ||||||
16 | participate in this
Fund under Section 3-109.1 of this | ||||||
17 | Code, regardless of whether such person
continues to be | ||||||
18 | employed as chief of police or is employed in some other
| ||||||
19 | rank or capacity within the police department, shall be an | ||||||
20 | employee under
this Article for so long as such person is | ||||||
21 | employed to perform police
duties by a participating | ||||||
22 | municipality and has not lawfully rescinded that
election. | ||||||
23 | (c) After August 26, 2011 (the effective date of Public | ||||||
24 | Act 97-609), are contributors to or eligible to contribute | ||||||
25 | to a Taft-Hartley pension plan established on or before | ||||||
26 | June 1, 2011 and are employees of a theatre, arena, or |
| |||||||
| |||||||
1 | convention center that is located in a municipality located | ||||||
2 | in a county with a population greater than 5,000,000, and | ||||||
3 | to which the participating municipality is required to | ||||||
4 | contribute as the person's employer based on earnings from | ||||||
5 | the municipality. Nothing in this paragraph shall affect | ||||||
6 | service credit or creditable service for any period of | ||||||
7 | service prior to August 26, 2011, and this paragraph shall | ||||||
8 | not apply to individuals who are participating in the Fund | ||||||
9 | prior to August 26, 2011.
| ||||||
10 | (d) Become an employee of any of the following | ||||||
11 | participating instrumentalities on or after the effective | ||||||
12 | date of this amendatory Act of the 98th General Assembly: | ||||||
13 | the Illinois Municipal League; the Illinois Association of | ||||||
14 | Park Districts; the Illinois Supervisors, County | ||||||
15 | Commissioners and Superintendents of Highways Association; | ||||||
16 | an association or not-for-profit corporation, membership | ||||||
17 | in which is authorized under Section 85-15 of the Township | ||||||
18 | Code; the United Counties Council; or the Will County | ||||||
19 | Governmental League. | ||||||
20 | (3) All persons, including, without limitation, public | ||||||
21 | defenders and
probation officers, who receive earnings from | ||||||
22 | general or special funds
of a county for performance of | ||||||
23 | personal services or official duties
within the territorial | ||||||
24 | limits of the county, are employees of the county
(unless | ||||||
25 | excluded by subsection (2) of this Section) notwithstanding | ||||||
26 | that
they may be appointed by and are subject to the direction |
| |||||||
| |||||||
1 | of a person or
persons other than a county board or a county | ||||||
2 | officer. It is hereby
established that an employer-employee | ||||||
3 | relationship under the usual
common law rules exists between | ||||||
4 | such employees and the county paying
their salaries by reason | ||||||
5 | of the fact that the county boards fix their
rates of | ||||||
6 | compensation, appropriate funds for payment of their earnings
| ||||||
7 | and otherwise exercise control over them. This finding and this
| ||||||
8 | amendatory Act shall apply to all such employees from the date | ||||||
9 | of
appointment whether such date is prior to or after the | ||||||
10 | effective date of
this amendatory Act and is intended to | ||||||
11 | clarify existing law pertaining
to their status as | ||||||
12 | participating employees in the Fund.
| ||||||
13 | (Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11; | ||||||
14 | 97-813, eff. 7-13-12.)
| ||||||
15 | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
| ||||||
16 | Sec. 14-103.10. Compensation.
| ||||||
17 | (a) For periods of service prior to January 1, 1978, the | ||||||
18 | full rate of salary
or wages payable to an employee for | ||||||
19 | personal services performed if he worked
the full normal | ||||||
20 | working period for his position, subject to the following
| ||||||
21 | maximum amounts: (1) prior to July 1, 1951, $400 per month or | ||||||
22 | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 | ||||||
23 | inclusive, $625 per month or $7,500
per year; (3) beginning | ||||||
24 | July 1, 1957, no limitation.
| ||||||
25 | In the case of service of an employee in a position |
| |||||||
| |||||||
1 | involving
part-time employment, compensation shall be | ||||||
2 | determined according to the
employees' earnings record.
| ||||||
3 | (b) For periods of service on and after January 1, 1978, | ||||||
4 | all
remuneration for personal services performed defined as | ||||||
5 | "wages" under
the Social Security Enabling Act, including that | ||||||
6 | part of such
remuneration which is in excess of any maximum | ||||||
7 | limitation provided in
such Act, and including any benefits | ||||||
8 | received by an employee under a sick
pay plan in effect before | ||||||
9 | January 1, 1981, but excluding lump sum salary
payments:
| ||||||
10 | (1) for vacation,
| ||||||
11 | (2) for accumulated unused sick leave,
| ||||||
12 | (3) upon discharge or dismissal,
| ||||||
13 | (4) for approved holidays.
| ||||||
14 | (c) For periods of service on or after December 16, 1978, | ||||||
15 | compensation
also includes any benefits, other than lump sum | ||||||
16 | salary payments made at
termination of employment, which an | ||||||
17 | employee receives or is eligible to
receive under a sick pay | ||||||
18 | plan authorized by law.
| ||||||
19 | (d) For periods of service after September 30, 1985, | ||||||
20 | compensation also
includes any remuneration for personal | ||||||
21 | services not included as "wages"
under the Social Security | ||||||
22 | Enabling Act, which is deducted for purposes of
participation | ||||||
23 | in a program established pursuant to Section 125 of the
| ||||||
24 | Internal Revenue Code or its successor laws.
| ||||||
25 | (e) For members for which Section 1-160 applies for periods | ||||||
26 | of service on and after January 1, 2011, all remuneration for |
| |||||||
| |||||||
1 | personal services performed defined as "wages" under the Social | ||||||
2 | Security Enabling Act, excluding remuneration that is in excess | ||||||
3 | of the annual earnings, salary, or wages of a member or | ||||||
4 | participant, as provided in subsection (b-5) of Section 1-160, | ||||||
5 | but including any benefits received by an employee under a sick | ||||||
6 | pay plan in effect before January 1, 1981.
Compensation shall | ||||||
7 | exclude lump sum salary payments: | ||||||
8 | (1) for vacation; | ||||||
9 | (2) for accumulated unused sick leave; | ||||||
10 | (3) upon discharge or dismissal; and | ||||||
11 | (4) for approved holidays. | ||||||
12 | (f) Notwithstanding any other provision of this Section, | ||||||
13 | "compensation" does not include any future increase in income | ||||||
14 | offered by a department under this Article pursuant to the | ||||||
15 | requirements of subsection (c) of Section 14-106.5 that is | ||||||
16 | accepted by a Tier I employee, or a Tier I retiree returning to | ||||||
17 | active service, who has made the election under paragraph (2) | ||||||
18 | of subsection (a) or (a-5) of Section 14-106.5. | ||||||
19 | (g) Notwithstanding any other provision of this Section, | ||||||
20 | for an employee who first becomes a participant on or after the | ||||||
21 | effective date of this amendatory Act of the 98th General | ||||||
22 | Assembly, "compensation" does not include any payments or | ||||||
23 | reimbursements for travel vouchers submitted more than 30 days | ||||||
24 | after the last day of travel for which the voucher is | ||||||
25 | submitted. | ||||||
26 | (Source: P.A. 96-1490, eff. 1-1-11.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/14-103.40 new) | ||||||
2 | Sec. 14-103.40. Tier I employee. "Tier I employee": An | ||||||
3 | employee under this Article who first became a member or | ||||||
4 | participant before January 1, 2011 under any reciprocal | ||||||
5 | retirement system or pension fund established under this Code | ||||||
6 | other than a retirement system or pension fund established | ||||||
7 | under Article 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
8 | (40 ILCS 5/14-103.41 new) | ||||||
9 | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former | ||||||
10 | Tier I employee who is receiving a retirement annuity. | ||||||
11 | (40 ILCS 5/14-103.42 new) | ||||||
12 | Sec. 14-103.42. Future increase in income. "Future | ||||||
13 | increase in income": Any increase in income in any form offered | ||||||
14 | by a department to an employee under this Article after June | ||||||
15 | 30, 2014 that would qualify as "compensation", as defined in | ||||||
16 | Section 14-103.10, but for the fact that the department offered | ||||||
17 | the increase in income to the employee on the condition that it | ||||||
18 | not qualify as compensation and the employee accepted the | ||||||
19 | increase in income subject to that condition. The term "future | ||||||
20 | increase in income" does not include an increase in income in | ||||||
21 | any form that is paid to a Tier I employee under an employment | ||||||
22 | contract or collective bargaining agreement that is in effect | ||||||
23 | on the effective date of this Section but does include an |
| |||||||
| |||||||
1 | increase in income in any form pursuant to an extension, | ||||||
2 | amendment, or renewal of any such employment contract or | ||||||
3 | collective bargaining agreement on or after the effective date | ||||||
4 | of this amendatory Act of the 98th General Assembly. | ||||||
5 | (40 ILCS 5/14-106.5 new) | ||||||
6 | Sec. 14-106.5. Election by Tier I employees and Tier I | ||||||
7 | retirees. | ||||||
8 | (a) Each Tier I employee shall make an irrevocable election | ||||||
9 | either: | ||||||
10 | (1) to agree to item (i) or (ii) as set forth in this | ||||||
11 | paragraph (1): | ||||||
12 | (i) to have the amount of the automatic annual | ||||||
13 | increases in his or her retirement annuity that are | ||||||
14 | otherwise provided for in this Article calculated, | ||||||
15 | instead, as provided in subsection (a-1) of Section | ||||||
16 | 14-114, and to waive his or her eligibility for 2 | ||||||
17 | automatic annual increases in retirement annuity as | ||||||
18 | provided in subsection (a-2) of Section 14-114; or | ||||||
19 | (ii) to waive his or her eligibility for 3 | ||||||
20 | automatic annual increases in retirement annuity, as | ||||||
21 | provided in subsection (a-3) of Section 14-114, and to | ||||||
22 | make the contributions set forth in subsection (a-5) of | ||||||
23 | Section 14-133; or | ||||||
24 | (2) to not agree to item (i) or (ii) as set forth in | ||||||
25 | paragraph (1) of this subsection. |
| |||||||
| |||||||
1 | The election required under this subsection (a) shall be | ||||||
2 | made by each Tier I employee no earlier than February 1, 2014 | ||||||
3 | and no later than May 31, 2014, except that: | ||||||
4 | (i) a person who becomes a Tier I employee under this | ||||||
5 | Article on or after February 1, 2014 must make the election | ||||||
6 | under this subsection (a) within 60 days after becoming a | ||||||
7 | Tier I employee; | ||||||
8 | (ii) a person who returns to active service as a Tier I | ||||||
9 | employee under this Article on or after February 1, 2014 | ||||||
10 | and has not yet made an election under this Section must | ||||||
11 | make the election under this subsection (a) within 60 days | ||||||
12 | after returning to active service as a Tier I employee; and | ||||||
13 | (iii) a person who made the election under subsection | ||||||
14 | (a-5) as a Tier I retiree remains bound by that election | ||||||
15 | and shall not make a later election under this subsection | ||||||
16 | (a). | ||||||
17 | If a Tier I employee fails for any reason to make a | ||||||
18 | required election under this subsection within the time | ||||||
19 | specified, then the employee shall be deemed to have made the | ||||||
20 | election under paragraph (2) of this subsection. | ||||||
21 | (a-5) Each Tier I retiree shall make an irrevocable | ||||||
22 | election either: | ||||||
23 | (1) to agree to the following: | ||||||
24 | (i) to have the amount of the automatic annual | ||||||
25 | increases in his or her retirement annuity calculated | ||||||
26 | without regard to subsection (a-1), (a-2), or (a-3) of |
| |||||||
| |||||||
1 | Section 14-114; and | ||||||
2 | (ii) to waive his or her eligibility for 2 | ||||||
3 | automatic annual increases in retirement annuity as | ||||||
4 | provided in subsection (a-4) of Section 14-114; or | ||||||
5 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
6 | paragraph (1) of this subsection. | ||||||
7 | The election required under this subsection (a-5) shall be | ||||||
8 | made by each Tier I retiree no earlier than February 1, 2014 | ||||||
9 | and no later than May 31, 2014, except that: | ||||||
10 | (i) a person who becomes a Tier I retiree under this | ||||||
11 | Article on or after February 1, 2014 must make the election | ||||||
12 | under this subsection (a-5) within 60 days after becoming a | ||||||
13 | Tier I retiree; and | ||||||
14 | (ii) a person who made the election under subsection | ||||||
15 | (a) as a Tier I employee remains bound by that election and | ||||||
16 | shall not make a later election under this subsection | ||||||
17 | (a-5). | ||||||
18 | If a Tier I retiree fails for any reason to make a required | ||||||
19 | election under this subsection within the time specified, then | ||||||
20 | the Tier I retiree shall be deemed to have made the election | ||||||
21 | under paragraph (2) of this subsection. | ||||||
22 | (a-10) All elections under subsection (a) or (a-5) that are | ||||||
23 | made or deemed to be made before June 1, 2014 shall take effect | ||||||
24 | on July 1, 2014. Elections that are made or deemed to be made | ||||||
25 | on or after June 1, 2014 shall take effect on the first day of | ||||||
26 | the month following the month in which the election is made or |
| |||||||
| |||||||
1 | deemed to be made. | ||||||
2 | (b) As adequate and legal consideration provided under this | ||||||
3 | amendatory Act of the 98th General Assembly for making an | ||||||
4 | election under paragraph (1) of subsection (a) of this Section, | ||||||
5 | any future increases in income offered by a department under | ||||||
6 | this Article to a Tier I employee who has made an election | ||||||
7 | under paragraph (1) of subsection (a) of this Section shall be | ||||||
8 | offered expressly and irrevocably as constituting compensation | ||||||
9 | under Section 14-103.10. In addition, a Tier I employee who has | ||||||
10 | made an election under item (i) of paragraph (1) of subsection | ||||||
11 | (a) of this Section shall receive the right to also participate | ||||||
12 | in the optional cash balance plan established under Section | ||||||
13 | 1-162. | ||||||
14 | As adequate and legal consideration provided under this | ||||||
15 | amendatory Act of the 98th General Assembly for making an | ||||||
16 | election under paragraph (1) of subsection (a-5) of this | ||||||
17 | Section, any future increases in income offered by a department | ||||||
18 | under this Article to a Tier I retiree who returns to active | ||||||
19 | service after having made the election under paragraph (1) of | ||||||
20 | subsection (a-5) of this Section shall be offered expressly and | ||||||
21 | irrevocably as constituting compensation under Section | ||||||
22 | 14-103.10. | ||||||
23 | (c) A Tier I employee who makes the election under | ||||||
24 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
25 | subject to either item (i) or (ii) set forth in paragraph (1) | ||||||
26 | of subsection (a) of this Section. However, any future |
| |||||||
| |||||||
1 | increases in income offered by a department under this Article | ||||||
2 | to a Tier I employee who has made the election under paragraph | ||||||
3 | (2) of subsection (a) of this Section shall be offered by the | ||||||
4 | department expressly and irrevocably as not constituting | ||||||
5 | compensation under Section 14-103.10, and the employee may not | ||||||
6 | accept any future increase in income that is offered in | ||||||
7 | violation of this requirement. In addition, a Tier I employee | ||||||
8 | who has made the election under paragraph (2) of subsection (a) | ||||||
9 | of this Section shall not receive the right to participate in | ||||||
10 | the optional cash balance plan established under Section 1-162. | ||||||
11 | A Tier I retiree who makes the election under paragraph (2) | ||||||
12 | of subsection (a-5) of this Section shall not be subject to | ||||||
13 | either item (i) or (ii) set forth in paragraph (1) of | ||||||
14 | subsection (a-5) of this Section. However, any future increases | ||||||
15 | in income offered by a department under this Article to a Tier | ||||||
16 | I retiree who returns to active service and has made the | ||||||
17 | election under paragraph (2) of subsection (a-5) of this | ||||||
18 | Section shall be offered by the department expressly and | ||||||
19 | irrevocably as not constituting compensation under Section | ||||||
20 | 14-103.10, and the employee may not accept any future increase | ||||||
21 | in income that is offered in violation of this requirement. In | ||||||
22 | addition, a Tier I retiree who returns to active service and | ||||||
23 | has made the election under paragraph (2) of subsection (a) of | ||||||
24 | this Section shall not receive the right to participate in the | ||||||
25 | optional cash balance plan established under Section 1-162. | ||||||
26 | (d) The System shall make a good faith effort to contact |
| |||||||
| |||||||
1 | each Tier I employee and Tier I retiree subject to this | ||||||
2 | Section. The System shall mail information describing the | ||||||
3 | required election to each Tier I employee and Tier I retiree by | ||||||
4 | United States Postal Service mail to his or her last known | ||||||
5 | address on file with the System. If the Tier I employee or Tier | ||||||
6 | I retiree is not responsive to other means of contact, it is | ||||||
7 | sufficient for the System to publish the details of any | ||||||
8 | required elections on its website or to publish those details | ||||||
9 | in a regularly published newsletter or other existing public | ||||||
10 | forum. | ||||||
11 | Tier I employees and Tier I retirees who are subject to | ||||||
12 | this Section shall be provided with an election packet | ||||||
13 | containing information regarding their options, as well as the | ||||||
14 | forms necessary to make the required election. Upon request, | ||||||
15 | the System shall offer Tier I employees and Tier I retirees an | ||||||
16 | opportunity to receive information from the System before | ||||||
17 | making the required election. The information may consist of | ||||||
18 | video materials, group presentations, individual consultation | ||||||
19 | with a member or authorized representative of the System in | ||||||
20 | person or by telephone or other electronic means, or any | ||||||
21 | combination of those methods. The System shall not provide | ||||||
22 | advice or counseling with respect to which election a Tier I | ||||||
23 | employee or Tier I retiree should make or specific to the legal | ||||||
24 | or tax circumstances of or consequences to the Tier I employee | ||||||
25 | or Tier I retiree. | ||||||
26 | The System shall inform Tier I employees and Tier I |
| |||||||
| |||||||
1 | retirees in the election packet required under this subsection | ||||||
2 | that the Tier I employee or Tier I retiree may also wish to | ||||||
3 | obtain information and counsel relating to the election | ||||||
4 | required under this Section from any other available source, | ||||||
5 | including but not limited to labor organizations and private | ||||||
6 | counsel. | ||||||
7 | In no event shall the System, its staff, or the Board be | ||||||
8 | held liable for any information given to a member, beneficiary, | ||||||
9 | or annuitant regarding the elections under this Section. The | ||||||
10 | System shall coordinate with the Illinois Department of Central | ||||||
11 | Management Services and each other retirement system | ||||||
12 | administering an election in accordance with this amendatory | ||||||
13 | Act of the 98th General Assembly to provide information | ||||||
14 | concerning the impact of the election set forth in this | ||||||
15 | Section. | ||||||
16 | (e) Notwithstanding any other provision of law, a | ||||||
17 | department under this Article is required to offer any future | ||||||
18 | increases in income expressly and irrevocably as not | ||||||
19 | constituting "compensation" under Section 14-103.10 to any | ||||||
20 | Tier I employee, or Tier I retiree returning to active service, | ||||||
21 | who has made an election under paragraph (2) of subsection (a) | ||||||
22 | or (a-5) of Section 14-106.5. A Tier I employee, or Tier I | ||||||
23 | retiree returning to active service, who has made an election | ||||||
24 | under paragraph (2) of subsection (a) or (a-5) of Section | ||||||
25 | 14-106.5 shall not accept any future increase in income that is | ||||||
26 | offered by an employer under this Article in violation of the |
| |||||||
| |||||||
1 | requirement set forth in this subsection. | ||||||
2 | (f) A member's election under this Section is not a | ||||||
3 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
4 | of this Code. | ||||||
5 | (g) An employee who has made the election under item (i) of | ||||||
6 | paragraph (1) of subsection (a) of this Section may elect to | ||||||
7 | participate in the optional cash balance plan under Section | ||||||
8 | 1-162. | ||||||
9 | The election to participate in the optional cash balance | ||||||
10 | plan shall be made in writing, in the manner provided by the | ||||||
11 | applicable retirement system. | ||||||
12 | (h) No provision of this Section shall be interpreted in a | ||||||
13 | way that would cause the System to cease to be a qualified plan | ||||||
14 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
15 | (i) If this Section is determined to be unconstitutional or | ||||||
16 | otherwise invalid by a final unappealable decision of an | ||||||
17 | Illinois court or a court of competent jurisdiction as applied | ||||||
18 | to Tier I employees but not as applied to Tier I retirees, then | ||||||
19 | this Section and the changes deriving from the election | ||||||
20 | required under this Section shall be null and void as applied | ||||||
21 | to Tier I employees but shall remain in full effect for Tier I | ||||||
22 | retirees. | ||||||
23 | (j) If this Section is determined to be unconstitutional or | ||||||
24 | otherwise invalid by a final unappealable decision of an | ||||||
25 | Illinois court or a court of competent jurisdiction as applied | ||||||
26 | to Tier I retirees but not as applied to Tier I employees, then |
| |||||||
| |||||||
1 | this Section and the changes deriving from the election | ||||||
2 | required under this Section shall be null and void as applied | ||||||
3 | to Tier I retirees but shall remain in full effect for Tier I | ||||||
4 | employees. | ||||||
5 | (k) If an election created by this amendatory Act in any | ||||||
6 | other Article of this Code or any change deriving from that | ||||||
7 | election is determined to be unconstitutional or otherwise | ||||||
8 | invalid by a final unappealable decision of an Illinois court | ||||||
9 | or a court of competent jurisdiction, the invalidity of that | ||||||
10 | provision shall not in any way affect the validity of this | ||||||
11 | Section or the changes deriving from the election required | ||||||
12 | under this Section.
| ||||||
13 | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
| ||||||
14 | Sec. 14-114. Automatic increase in retirement annuity.
| ||||||
15 | (a) Subject to the provisions of subsections (a-1), (a-2), | ||||||
16 | (a-3), and (a-4), any Any person receiving a retirement annuity | ||||||
17 | under this Article who
retires having attained age 60, or who | ||||||
18 | retires before age 60 having at
least 35 years of creditable | ||||||
19 | service, or who retires on or after January
1, 2001 at an age | ||||||
20 | which, when added to the number of years of his or her
| ||||||
21 | creditable service, equals at least 85, shall, on January 1 | ||||||
22 | next
following the first full year of retirement, have the | ||||||
23 | amount of the then fixed
and payable monthly retirement annuity | ||||||
24 | increased 3%. Any person receiving a
retirement annuity under | ||||||
25 | this Article who retires before attainment of age 60
and with |
| |||||||
| |||||||
1 | less than (i) 35 years of creditable service if retirement
is | ||||||
2 | before January 1, 2001, or (ii) the number of years of | ||||||
3 | creditable service
which, when added to the member's age, would | ||||||
4 | equal 85, if retirement is on
or after January 1, 2001, shall | ||||||
5 | have the amount of the fixed and payable
retirement annuity | ||||||
6 | increased by 3% on the January 1 occurring on or next
following | ||||||
7 | (1) attainment of age 60, or (2) the first anniversary of | ||||||
8 | retirement,
whichever occurs later. However, for persons who | ||||||
9 | receive the alternative
retirement annuity under Section | ||||||
10 | 14-110, references in this subsection (a) to
attainment of age | ||||||
11 | 60 shall be deemed to refer to attainment of age 55. For a
| ||||||
12 | person receiving early retirement incentives under Section | ||||||
13 | 14-108.3 whose
retirement annuity began after January 1, 1992 | ||||||
14 | pursuant to an extension granted
under subsection (e) of that | ||||||
15 | Section, the first anniversary of retirement shall
be deemed to | ||||||
16 | be January 1, 1993.
For a person who retires on or after June | ||||||
17 | 28, 2001 and on or before October 1, 2001,
and whose retirement | ||||||
18 | annuity is calculated, in whole or in part, under Section
| ||||||
19 | 14-110 or subsection (g) or (h) of Section 14-108, the first | ||||||
20 | anniversary of
retirement shall be deemed to be January 1, | ||||||
21 | 2002.
| ||||||
22 | On each January 1 following the date of the initial | ||||||
23 | increase under this
subsection, the employee's monthly | ||||||
24 | retirement annuity shall be increased
by an additional 3%.
| ||||||
25 | Beginning January 1, 1990 , and except as provided in | ||||||
26 | subsection (a-1) , all automatic annual increases payable under
|
| |||||||
| |||||||
1 | this Section shall be calculated as a percentage of the total | ||||||
2 | annuity
payable at the time of the increase, including previous | ||||||
3 | increases granted
under this Article.
| ||||||
4 | (a-1) Notwithstanding any other provision of this Article, | ||||||
5 | for a Tier I employee who made the election under item (i) of | ||||||
6 | paragraph (1) of subsection (a) of Section 14-106.5, the amount | ||||||
7 | of each automatic annual increase in retirement annuity | ||||||
8 | occurring on or after the effective date of that election shall | ||||||
9 | be 3% of the originally granted retirement annuity. | ||||||
10 | (a-2) Notwithstanding any other provision of this Article, | ||||||
11 | for a Tier I employee who made the election under item (i) of | ||||||
12 | paragraph (1) of subsection (a) of Section 14-106.5, once the | ||||||
13 | first annual increase under this Section has been granted, the | ||||||
14 | next 2 scheduled annual increases shall be skipped, and | ||||||
15 | thereafter all annual increases shall be granted. | ||||||
16 | (a-3) Notwithstanding any other provision of this Article, | ||||||
17 | for a Tier I employee who made the election under item (ii) of | ||||||
18 | paragraph (1) of subsection (a) of Section 14-106.5, once the | ||||||
19 | first annual increase under this Section has been granted, the | ||||||
20 | next 3 scheduled annual increases shall be skipped, and | ||||||
21 | thereafter all annual increases shall be granted. | ||||||
22 | (a-4) Notwithstanding any other provision of this Article, | ||||||
23 | for a Tier I retiree who made the election under paragraph (1) | ||||||
24 | of subsection (a-5) of Section 14-106.5: | ||||||
25 | (1) if the Tier I retiree has not received the first | ||||||
26 | annual increase under this Section as of the effective date |
| |||||||
| |||||||
1 | of this amendatory Act of the 98th General Assembly, then | ||||||
2 | once the first annual increase under this Section has been | ||||||
3 | granted, the next scheduled annual increase shall be | ||||||
4 | skipped, the following annual increase shall be granted, | ||||||
5 | the next annual increase shall be skipped, and thereafter | ||||||
6 | all annual increases shall be granted; and | ||||||
7 | (2) if the Tier I retiree has received the first annual | ||||||
8 | increase under this Section as of the effective date of | ||||||
9 | this amendatory Act of the 98th General Assembly, then the | ||||||
10 | next annual increase after that effective date shall be | ||||||
11 | skipped, the following annual increase shall be granted, | ||||||
12 | the next annual increase shall be skipped, and thereafter | ||||||
13 | all annual increases shall be granted. | ||||||
14 | (b) The provisions of subsection (a) of this Section shall | ||||||
15 | be
applicable to an employee only if the employee makes the | ||||||
16 | additional
contributions required after December 31, 1969 for | ||||||
17 | the purpose of the
automatic increases for not less than the | ||||||
18 | equivalent of one full year.
If an employee becomes an | ||||||
19 | annuitant before his additional contributions
equal one full | ||||||
20 | year's contributions based on his salary at the date of
| ||||||
21 | retirement, the employee may pay the necessary balance of the
| ||||||
22 | contributions to the system, without interest, and be eligible | ||||||
23 | for the
increasing annuity authorized by this Section.
| ||||||
24 | (c) The provisions of subsection (a) of this Section shall | ||||||
25 | not be
applicable to any annuitant who is on retirement on | ||||||
26 | December 31, 1969, and
thereafter returns to State service, |
| |||||||
| |||||||
1 | unless the member has established at
least one year of | ||||||
2 | additional creditable service following reentry into service.
| ||||||
3 | (d) In addition to other increases which may be provided by | ||||||
4 | this Section,
on January 1, 1981 any annuitant who was | ||||||
5 | receiving a retirement annuity
on or before January 1, 1971 | ||||||
6 | shall have his retirement annuity then being
paid increased $1 | ||||||
7 | per month for each year of creditable service. On January
1, | ||||||
8 | 1982, any annuitant who began receiving a retirement annuity on | ||||||
9 | or
before January 1, 1977, shall have his retirement annuity | ||||||
10 | then being paid
increased $1 per month for each year of | ||||||
11 | creditable service.
| ||||||
12 | On January 1, 1987, any annuitant who began receiving a | ||||||
13 | retirement
annuity on or before January 1, 1977, shall have the | ||||||
14 | monthly retirement annuity
increased by an amount equal to 8¢ | ||||||
15 | per year of creditable service times the
number of years that | ||||||
16 | have elapsed since the annuity began.
| ||||||
17 | (e) Every person who receives the alternative retirement | ||||||
18 | annuity under
Section 14-110 and who is eligible to receive the | ||||||
19 | 3% increase under subsection
(a) on January 1, 1986, shall also | ||||||
20 | receive on that date a one-time increase
in retirement annuity | ||||||
21 | equal to the difference between (1) his actual
retirement | ||||||
22 | annuity on that date, including any increases received under
| ||||||
23 | subsection (a), and (2) the amount of retirement annuity he | ||||||
24 | would have
received on that date if the amendments to | ||||||
25 | subsection (a) made by Public
Act 84-162 had been in effect | ||||||
26 | since the date of his retirement.
|
| |||||||
| |||||||
1 | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
| ||||||
2 | 92-651, eff. 7-11-02.)
| ||||||
3 | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
| ||||||
4 | Sec. 14-132. Obligations of State ; funding guarantee . | ||||||
5 | (a) The payment of the required department
contributions, | ||||||
6 | all allowances,
annuities, benefits granted under this | ||||||
7 | Article, and all expenses of
administration of the system are | ||||||
8 | obligations of the State of Illinois to
the extent specified in | ||||||
9 | this Article.
| ||||||
10 | All income of the system
shall be credited to a separate | ||||||
11 | account for this system in the State
treasury and shall be used | ||||||
12 | to pay allowances, annuities, benefits and
administration | ||||||
13 | expense.
| ||||||
14 | (b) The State shall be contractually obligated to | ||||||
15 | contribute to the System in each State fiscal year an amount | ||||||
16 | not less than the sum required in Section 14-131 as that | ||||||
17 | Section existed prior to the effective date of this amendatory | ||||||
18 | Act of the 98th General Assembly. | ||||||
19 | The obligations created under this subsection (b) are | ||||||
20 | contractual obligations protected and enforceable under | ||||||
21 | Article I, Section 16 and Article XIII, Section 5 of the | ||||||
22 | Illinois Constitution. | ||||||
23 | Notwithstanding any other provision of law, if the State | ||||||
24 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
25 | this subsection (b), the System may bring a mandamus action in |
| |||||||
| |||||||
1 | the Circuit Court of Sangamon County to compel the State to | ||||||
2 | make that payment, irrespective of other remedies that
may be | ||||||
3 | available to the System. It shall be the mandatory fiduciary | ||||||
4 | obligation of the Board of the System to bring that action if | ||||||
5 | the State fails to pay in the fiscal year the amount guaranteed | ||||||
6 | under this subsection (b). Before commencing that action, the | ||||||
7 | Board shall submit a voucher for the contributions required in | ||||||
8 | Section 14-131. If the State fails to pay a vouchered amount | ||||||
9 | within 90 days after receiving a voucher for that amount, then | ||||||
10 | the Board shall submit a written request to the Comptroller | ||||||
11 | seeking payment of that amount. A copy of the request shall be | ||||||
12 | filed with the Secretary of State, and the Secretary of State | ||||||
13 | shall provide copies of the request to the Governor and General | ||||||
14 | Assembly. No earlier than the 16th day after filing a request | ||||||
15 | with the Secretary, but no later than the 21st day after filing | ||||||
16 | that request, the Board may commence such an action in the | ||||||
17 | Circuit Court. If the Board fails to commence such action on or | ||||||
18 | before the 21st day after filing the request with the Secretary | ||||||
19 | of State, then any Tier I employee or Tier I retiree who made | ||||||
20 | the election under paragraph (1) of subsection (a) or (a-5) of | ||||||
21 | Section 14-106.5 may file a mandamus action against the Board | ||||||
22 | to compel the Board to commence its mandamus action against the | ||||||
23 | State. This subsection (b) constitutes an express waiver of the | ||||||
24 | State's sovereign immunity. In ordering the State to make the | ||||||
25 | required payment, the court may order a reasonable payment | ||||||
26 | schedule to enable the State to make the required payment. The |
| |||||||
| |||||||
1 | obligations and causes of action created under this subsection | ||||||
2 | (b) shall be in addition to any other right or remedy otherwise | ||||||
3 | accorded by common law, or State or federal law, and nothing in | ||||||
4 | this subsection shall be construed to deny, abrogate, impair, | ||||||
5 | or waive any such common law or statutory right or remedy. | ||||||
6 | Any payments required to be made by the State pursuant to | ||||||
7 | this subsection (b) are expressly subordinated to the payment | ||||||
8 | of the principal, interest, and premium, if any, on any
bonded | ||||||
9 | debt obligation of the State or any other State-created entity, | ||||||
10 | either currently outstanding or to
be issued, for which the | ||||||
11 | source of repayment or security thereon is derived directly or | ||||||
12 | indirectly from
tax revenues collected by the State or any | ||||||
13 | other State-created entity. Payments on such bonded
| ||||||
14 | obligations include any statutory fund transfers or other | ||||||
15 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
16 | in State law or bond indentures, into debt service funds or | ||||||
17 | accounts of the State
related to such bonded obligations, | ||||||
18 | consistent with the payment schedules associated with such
| ||||||
19 | obligations. | ||||||
20 | (Source: P.A. 80-841.)
| ||||||
21 | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| ||||||
22 | Sec. 14-133. Contributions on behalf of members.
| ||||||
23 | (a) Each participating employee shall make contributions | ||||||
24 | to the System,
based on the employee's compensation, as | ||||||
25 | follows:
|
| |||||||
| |||||||
1 | (1) Covered employees, except as indicated below, 3.5% | ||||||
2 | for
retirement annuity, and 0.5% for a widow or survivors
| ||||||
3 | annuity;
| ||||||
4 | (2) Noncovered employees, except as indicated below, | ||||||
5 | 7% for retirement
annuity and 1% for a widow or survivors | ||||||
6 | annuity;
| ||||||
7 | (3) Noncovered employees serving in a position in which | ||||||
8 | "eligible
creditable service" as defined in Section 14-110 | ||||||
9 | may be earned, 1% for a widow
or survivors annuity
plus the | ||||||
10 | following amount for retirement annuity: 8.5% through | ||||||
11 | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | ||||||
12 | in 2004 and thereafter;
| ||||||
13 | (4) Covered employees serving in a position in which | ||||||
14 | "eligible creditable
service" as defined in Section 14-110 | ||||||
15 | may be earned, 0.5% for a widow or survivors annuity
plus | ||||||
16 | the following amount for retirement annuity: 5% through | ||||||
17 | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | ||||||
18 | and thereafter;
| ||||||
19 | (5) Each security employee of the Department of | ||||||
20 | Corrections
or of the Department of Human Services who is a | ||||||
21 | covered employee, 0.5% for a widow or survivors annuity
| ||||||
22 | plus the following amount for retirement annuity: 5% | ||||||
23 | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | ||||||
24 | in 2004 and thereafter;
| ||||||
25 | (6) Each security employee of the Department of | ||||||
26 | Corrections
or of the Department of Human Services who is |
| |||||||
| |||||||
1 | not a covered employee, 1% for a widow or survivors annuity
| ||||||
2 | plus the following amount for retirement annuity: 8.5% | ||||||
3 | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | ||||||
4 | 11.5% in 2004 and thereafter.
| ||||||
5 | (a-1) In addition to the contributions required under | ||||||
6 | subsection (a), an employee who elects to participate in the | ||||||
7 | optional cash balance plan under Section 1-162 shall pay to the | ||||||
8 | System for the purpose of participating in the optional cash | ||||||
9 | balance plan an additional contribution of 2% of each payment | ||||||
10 | of compensation received while he or she is a participant in | ||||||
11 | the optional cash balance plan. These contributions shall not | ||||||
12 | be used for the purpose of determining any benefit under this | ||||||
13 | Article except as provided in the optional cash balance plan. | ||||||
14 | (a-5) In addition to the contributions otherwise required | ||||||
15 | under this Article, each Tier I member who made the election | ||||||
16 | under item (ii) of paragraph (1) of subsection (a) of Section | ||||||
17 | 14-106.5 shall also make the following contributions for | ||||||
18 | retirement annuity from each payment
of compensation: | ||||||
19 | (1) beginning July 1, 2014 and through June 30, 2015, | ||||||
20 | 1% of compensation; and | ||||||
21 | (2) beginning on July 1, 2015, 2% of compensation. | ||||||
22 | (b) Contributions shall be in the form of a deduction from
| ||||||
23 | compensation and shall be made notwithstanding that the | ||||||
24 | compensation
paid in cash to the employee shall be reduced | ||||||
25 | thereby below the minimum
prescribed by law or regulation. Each | ||||||
26 | member is deemed to consent and
agree to the deductions from |
| |||||||
| |||||||
1 | compensation provided for in this Article,
and shall receipt in | ||||||
2 | full for salary or compensation.
| ||||||
3 | (Source: P.A. 92-14, eff. 6-28-01.)
| ||||||
4 | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| ||||||
5 | Sec. 14-135.08. To certify required State contributions. | ||||||
6 | (a)
To certify to the Governor and to each department, on | ||||||
7 | or before
November 15 of each year through until November 15, | ||||||
8 | 2011, the required rate for State contributions to the
System | ||||||
9 | for the next State fiscal year, as determined under subsection | ||||||
10 | (b) of
Section 14-131. The certification to the Governor under | ||||||
11 | this subsection (a) shall include a copy of the
actuarial | ||||||
12 | recommendations upon which the rate is based and shall | ||||||
13 | specifically identify the System's projected State normal cost | ||||||
14 | for that fiscal year .
| ||||||
15 | (a-5) On or before November 1 of each year, beginning | ||||||
16 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
17 | the Governor, and the General Assembly a proposed certification | ||||||
18 | of the amount of the required State contribution to the System | ||||||
19 | for the next fiscal year, along with all of the actuarial | ||||||
20 | assumptions, calculations, and data upon which that proposed | ||||||
21 | certification is based. On or before January 1 of each year , | ||||||
22 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
23 | preliminary report concerning the proposed certification and | ||||||
24 | identifying, if necessary, recommended changes in actuarial | ||||||
25 | assumptions that the Board must consider before finalizing its |
| |||||||
| |||||||
1 | certification of the required State contributions. | ||||||
2 | On or before January 15, 2013 and each January 15 | ||||||
3 | thereafter, the Board shall certify to the Governor and the | ||||||
4 | General Assembly the amount of the required State contribution | ||||||
5 | for the next fiscal year. The certification shall include a | ||||||
6 | copy of the actuarial
recommendations upon which it is based | ||||||
7 | and shall specifically identify the System's projected State | ||||||
8 | normal cost for that fiscal year. The Board's certification | ||||||
9 | must note any deviations from the State Actuary's recommended | ||||||
10 | changes, the reason or reasons for not following the State | ||||||
11 | Actuary's recommended changes, and the fiscal impact of not | ||||||
12 | following the State Actuary's recommended changes on the | ||||||
13 | required State contribution. | ||||||
14 | (b) The certifications under subsections (a) and (a-5) | ||||||
15 | shall include an additional amount necessary to pay all | ||||||
16 | principal of and interest on those general obligation bonds due | ||||||
17 | the next fiscal year authorized by Section 7.2(a) of the | ||||||
18 | General Obligation Bond Act and issued to provide the proceeds | ||||||
19 | deposited by the State with the System in July 2003, | ||||||
20 | representing deposits other than amounts reserved under | ||||||
21 | Section 7.2(c) of the General Obligation Bond Act. For State | ||||||
22 | fiscal year 2005, the Board shall make a supplemental | ||||||
23 | certification of the additional amount necessary to pay all | ||||||
24 | principal of and interest on those general obligation bonds due | ||||||
25 | in State fiscal years 2004 and 2005 authorized by Section | ||||||
26 | 7.2(a) of the General Obligation Bond Act and issued to provide |
| |||||||
| |||||||
1 | the proceeds deposited by the State with the System in July | ||||||
2 | 2003, representing deposits other than amounts reserved under | ||||||
3 | Section 7.2(c) of the General Obligation Bond Act, as soon as | ||||||
4 | practical after the effective date of this amendatory Act of | ||||||
5 | the 93rd General Assembly.
| ||||||
6 | On or before May 1, 2004, the Board shall recalculate and | ||||||
7 | recertify
to the Governor and to each department the amount of | ||||||
8 | the required State
contribution to the System and the required | ||||||
9 | rates for State contributions
to the System for State fiscal | ||||||
10 | year 2005, taking into account the amounts
appropriated to and | ||||||
11 | received by the System under subsection (d) of Section
7.2 of | ||||||
12 | the General Obligation Bond Act.
| ||||||
13 | On or before July 1, 2005, the Board shall recalculate and | ||||||
14 | recertify
to the Governor and to each department the amount of | ||||||
15 | the required State
contribution to the System and the required | ||||||
16 | rates for State contributions
to the System for State fiscal | ||||||
17 | year 2006, taking into account the changes in required State | ||||||
18 | contributions made by this amendatory Act of the 94th General | ||||||
19 | Assembly.
| ||||||
20 | On or before April 1, 2011, the Board shall recalculate and | ||||||
21 | recertify to the Governor and to each department the amount of | ||||||
22 | the required State contribution to the System for State fiscal | ||||||
23 | year 2011, applying the changes made by Public Act 96-889 to | ||||||
24 | the System's assets and liabilities as of June 30, 2009 as | ||||||
25 | though Public Act 96-889 was approved on that date. | ||||||
26 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
| |||||||
| |||||||
1 | 97-694, eff. 6-18-12.)
| ||||||
2 | (40 ILCS 5/14-152.1)
| ||||||
3 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
4 | increases. | ||||||
5 | (a) As used in this Section, "new benefit increase" means | ||||||
6 | an increase in the amount of any benefit provided under this | ||||||
7 | Article, or an expansion of the conditions of eligibility for | ||||||
8 | any benefit under this Article, that results from an amendment | ||||||
9 | to this Code that takes effect after June 1, 2005 (the | ||||||
10 | effective date of Public Act 94-4). "New benefit increase", | ||||||
11 | however, does not include any benefit increase resulting from | ||||||
12 | the changes made to this Article or Article 1 by Public Act | ||||||
13 | 96-37 or this amendatory Act of the 98th 96th General Assembly.
| ||||||
14 | (b) Notwithstanding any other provision of this Code or any | ||||||
15 | subsequent amendment to this Code, every new benefit increase | ||||||
16 | is subject to this Section and shall be deemed to be granted | ||||||
17 | only in conformance with and contingent upon compliance with | ||||||
18 | the provisions of this Section.
| ||||||
19 | (c) The Public Act enacting a new benefit increase must | ||||||
20 | identify and provide for payment to the System of additional | ||||||
21 | funding at least sufficient to fund the resulting annual | ||||||
22 | increase in cost to the System as it accrues. | ||||||
23 | Every new benefit increase is contingent upon the General | ||||||
24 | Assembly providing the additional funding required under this | ||||||
25 | subsection. The Commission on Government Forecasting and |
| |||||||
| |||||||
1 | Accountability shall analyze whether adequate additional | ||||||
2 | funding has been provided for the new benefit increase and | ||||||
3 | shall report its analysis to the Public Pension Division of the | ||||||
4 | Department of Financial and Professional Regulation. A new | ||||||
5 | benefit increase created by a Public Act that does not include | ||||||
6 | the additional funding required under this subsection is null | ||||||
7 | and void. If the Public Pension Division determines that the | ||||||
8 | additional funding provided for a new benefit increase under | ||||||
9 | this subsection is or has become inadequate, it may so certify | ||||||
10 | to the Governor and the State Comptroller and, in the absence | ||||||
11 | of corrective action by the General Assembly, the new benefit | ||||||
12 | increase shall expire at the end of the fiscal year in which | ||||||
13 | the certification is made.
| ||||||
14 | (d) Every new benefit increase shall expire 5 years after | ||||||
15 | its effective date or on such earlier date as may be specified | ||||||
16 | in the language enacting the new benefit increase or provided | ||||||
17 | under subsection (c). This does not prevent the General | ||||||
18 | Assembly from extending or re-creating a new benefit increase | ||||||
19 | by law. | ||||||
20 | (e) Except as otherwise provided in the language creating | ||||||
21 | the new benefit increase, a new benefit increase that expires | ||||||
22 | under this Section continues to apply to persons who applied | ||||||
23 | and qualified for the affected benefit while the new benefit | ||||||
24 | increase was in effect and to the affected beneficiaries and | ||||||
25 | alternate payees of such persons, but does not apply to any | ||||||
26 | other person, including without limitation a person who |
| |||||||
| |||||||
1 | continues in service after the expiration date and did not | ||||||
2 | apply and qualify for the affected benefit while the new | ||||||
3 | benefit increase was in effect.
| ||||||
4 | (Source: P.A. 96-37, eff. 7-13-09.)
| ||||||
5 | (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
| ||||||
6 | Sec. 15-106. Employer. "Employer": The University of | ||||||
7 | Illinois, Southern
Illinois University, Chicago State | ||||||
8 | University, Eastern Illinois University,
Governors State | ||||||
9 | University, Illinois State University, Northeastern Illinois
| ||||||
10 | University, Northern Illinois University, Western Illinois | ||||||
11 | University, the
State Board of Higher Education, the Illinois | ||||||
12 | Mathematics and Science Academy,
the University Civil Service | ||||||
13 | Merit Board, the Board of
Trustees of the State Universities | ||||||
14 | Retirement System, the Illinois Community
College Board, | ||||||
15 | community college
boards, any association of community college | ||||||
16 | boards organized under Section
3-55 of the Public Community | ||||||
17 | College Act, the Board of Examiners established
under the | ||||||
18 | Illinois Public Accounting Act, and, only during the period for | ||||||
19 | which
employer contributions required under Section 15-155 are | ||||||
20 | paid, the following
organizations: the alumni associations, | ||||||
21 | the foundations and the athletic
associations which are | ||||||
22 | affiliated with the universities and colleges included
in this | ||||||
23 | Section as employers. An individual that begins employment | ||||||
24 | after the effective date of this amendatory Act of the 98th | ||||||
25 | General Assembly with an entity not defined as an employer in |
| |||||||
| |||||||
1 | this Section shall not be deemed an employee for the purposes | ||||||
2 | of this Article with respect to that employment and shall not | ||||||
3 | be eligible to participate in the System with respect to that | ||||||
4 | employment; provided, however, that those individuals who are | ||||||
5 | both employed and already participants in the System on the | ||||||
6 | effective date of this amendatory Act of the 98th General | ||||||
7 | Assembly shall be entitled to remain participants in the System | ||||||
8 | for the duration of that employment and continue to earn | ||||||
9 | service credit. | ||||||
10 | Notwithstanding any provision of law to the contrary, an | ||||||
11 | individual who begins employment with any of the following | ||||||
12 | employers on or after the effective date of this amendatory Act | ||||||
13 | of the 98th General Assembly shall not be deemed an employee | ||||||
14 | and shall not be eligible to participate in the System with | ||||||
15 | respect to that employment: any association of community | ||||||
16 | college boards organized under Section
3-55 of the Public | ||||||
17 | Community College Act, the Association of Illinois | ||||||
18 | Middle-Grade Schools, the Illinois Association of School | ||||||
19 | Administrators, the Illinois Association for Supervision and | ||||||
20 | Curriculum Development, the Illinois Principals Association, | ||||||
21 | the Illinois Association of School Business Officials, or the | ||||||
22 | Illinois Special Olympics; provided, however, that those | ||||||
23 | individuals who are both employed and already participants in | ||||||
24 | the System on the effective date of this amendatory Act of the | ||||||
25 | 98th General Assembly shall be entitled to remain participants | ||||||
26 | in the System for the duration of that employment and continue |
| |||||||
| |||||||
1 | to earn service credit. | ||||||
2 | A department as defined in Section 14-103.04 is
an employer | ||||||
3 | for any person appointed by the Governor under the Civil
| ||||||
4 | Administrative Code of Illinois who is a participating employee | ||||||
5 | as defined in
Section 15-109. The Department of Central | ||||||
6 | Management Services is an employer with respect to persons | ||||||
7 | employed by the State Board of Higher Education in positions | ||||||
8 | with the Illinois Century Network as of June 30, 2004 who | ||||||
9 | remain continuously employed after that date by the Department | ||||||
10 | of Central Management Services in positions with the Illinois | ||||||
11 | Century Network, the Bureau of Communication and Computer | ||||||
12 | Services, or, if applicable, any successor bureau.
| ||||||
13 | The cities of Champaign and Urbana shall be considered
| ||||||
14 | employers, but only during the period for which contributions | ||||||
15 | are required to
be made under subsection (b-1) of Section | ||||||
16 | 15-155 and only with respect to
individuals described in | ||||||
17 | subsection (h) of Section 15-107.
| ||||||
18 | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See | ||||||
19 | Sec. 999 .)
| ||||||
20 | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
| ||||||
21 | Sec. 15-107. Employee.
| ||||||
22 | (a) "Employee" means any member of the educational, | ||||||
23 | administrative,
secretarial, clerical, mechanical, labor or | ||||||
24 | other staff of an employer
whose employment is permanent and | ||||||
25 | continuous or who is employed in a
position in which services |
| |||||||
| |||||||
1 | are expected to be rendered on a continuous
basis for at least | ||||||
2 | 4 months or one academic term, whichever is less, who
(A) | ||||||
3 | receives payment for personal services on a warrant issued | ||||||
4 | pursuant to
a payroll voucher certified by an employer and | ||||||
5 | drawn by the State
Comptroller upon the State Treasurer or by | ||||||
6 | an employer upon trust, federal
or other funds, or (B) is on a | ||||||
7 | leave of absence without pay. Employment
which is irregular, | ||||||
8 | intermittent or temporary shall not be considered
continuous | ||||||
9 | for purposes of this paragraph.
| ||||||
10 | However, a person is not an "employee" if he or she:
| ||||||
11 | (1) is a student enrolled in and regularly attending | ||||||
12 | classes in a
college or university which is an employer, | ||||||
13 | and is employed on a temporary
basis at less than full | ||||||
14 | time;
| ||||||
15 | (2) is currently receiving a retirement annuity or a | ||||||
16 | disability
retirement annuity under Section 15-153.2 from | ||||||
17 | this System;
| ||||||
18 | (3) is on a military leave of absence;
| ||||||
19 | (4) is eligible to participate in the Federal Civil | ||||||
20 | Service Retirement
System and is currently making | ||||||
21 | contributions to that system based upon
earnings paid by an | ||||||
22 | employer;
| ||||||
23 | (5) is on leave of absence without pay for more than 60 | ||||||
24 | days
immediately following termination of disability | ||||||
25 | benefits under this
Article;
| ||||||
26 | (6) is hired after June 30, 1979 as a public service |
| |||||||
| |||||||
1 | employment program
participant under the Federal | ||||||
2 | Comprehensive Employment and Training Act
and receives | ||||||
3 | earnings in whole or in part from funds provided under that
| ||||||
4 | Act; or
| ||||||
5 | (7) is employed on or after July 1, 1991 to perform | ||||||
6 | services that
are excluded by subdivision (a)(7)(f) or | ||||||
7 | (a)(19) of Section 210 of the
federal Social Security Act | ||||||
8 | from the definition of employment given in that
Section (42 | ||||||
9 | U.S.C. 410).
| ||||||
10 | (b) Any employer may, by filing a written notice with the | ||||||
11 | board, exclude
from the definition of "employee" all persons | ||||||
12 | employed pursuant to a federally
funded contract entered into | ||||||
13 | after July 1, 1982 with a federal military
department in a | ||||||
14 | program providing training in military courses to federal
| ||||||
15 | military personnel on a military site owned by the United | ||||||
16 | States Government,
if this exclusion is not prohibited by the | ||||||
17 | federally funded contract or
federal laws or rules governing | ||||||
18 | the administration of the contract.
| ||||||
19 | (c) Any person appointed by the Governor under the Civil | ||||||
20 | Administrative
Code of the State is an employee, if he or she | ||||||
21 | is a participant in this
system on the effective date of the | ||||||
22 | appointment.
| ||||||
23 | (d) A participant on lay-off status under civil service | ||||||
24 | rules is
considered an employee for not more than 120 days from | ||||||
25 | the date of the lay-off.
| ||||||
26 | (e) A participant is considered an employee during (1) the |
| |||||||
| |||||||
1 | first 60 days
of disability leave, (2) the period, not to | ||||||
2 | exceed one year, in which his
or her eligibility for disability | ||||||
3 | benefits is being considered by the board
or reviewed by the | ||||||
4 | courts, and (3) the period he or she receives disability
| ||||||
5 | benefits under the provisions of Section 15-152, workers' | ||||||
6 | compensation or
occupational disease benefits, or disability | ||||||
7 | income under an insurance
contract financed wholly or partially | ||||||
8 | by the employer.
| ||||||
9 | (f) Absences without pay, other than formal leaves of | ||||||
10 | absence, of less
than 30 calendar days, are not considered as | ||||||
11 | an interruption of a person's
status as an employee. If such | ||||||
12 | absences during any period of 12 months
exceed 30 work days, | ||||||
13 | the employee status of the person is considered as
interrupted | ||||||
14 | as of the 31st work day.
| ||||||
15 | (g) A staff member whose employment contract requires | ||||||
16 | services during
an academic term is to be considered an | ||||||
17 | employee during the summer and
other vacation periods, unless | ||||||
18 | he or she declines an employment contract
for the succeeding | ||||||
19 | academic term or his or her employment status is
otherwise | ||||||
20 | terminated, and he or she receives no earnings during these | ||||||
21 | periods.
| ||||||
22 | (h) An individual who was a participating employee employed | ||||||
23 | in the fire
department of the University of Illinois's | ||||||
24 | Champaign-Urbana campus immediately
prior to the elimination | ||||||
25 | of that fire department and who immediately after the
| ||||||
26 | elimination of that fire department became employed by the fire |
| |||||||
| |||||||
1 | department of
the City of Urbana or the City of Champaign shall | ||||||
2 | continue to be considered as
an employee for purposes of this | ||||||
3 | Article for so long as the individual remains
employed as a | ||||||
4 | firefighter by the City of Urbana or the City of Champaign. The
| ||||||
5 | individual shall cease to be considered an employee under this | ||||||
6 | subsection (h)
upon the first termination of the individual's | ||||||
7 | employment as a firefighter by
the City of Urbana or the City | ||||||
8 | of Champaign.
| ||||||
9 | (i) An individual who is employed on a full-time basis as | ||||||
10 | an officer
or employee of a statewide teacher organization that | ||||||
11 | serves System
participants or an officer of a national teacher | ||||||
12 | organization that serves
System participants may participate | ||||||
13 | in the System and shall be deemed an
employee, provided that | ||||||
14 | (1) the individual has previously earned
creditable service | ||||||
15 | under this Article, (2) the individual files with the
System an | ||||||
16 | irrevocable election to become a participant before the | ||||||
17 | effective date of this amendatory Act of the 97th General | ||||||
18 | Assembly, (3) the
individual does not receive credit for that | ||||||
19 | employment under any other Article
of this Code, and (4) the | ||||||
20 | individual first became a full-time employee of the teacher | ||||||
21 | organization and becomes a participant before the effective | ||||||
22 | date of this amendatory Act of the 97th General Assembly. An | ||||||
23 | employee under this subsection (i) is responsible for paying
to | ||||||
24 | the System both (A) employee contributions based on the actual | ||||||
25 | compensation
received for service with the teacher | ||||||
26 | organization and (B) employer
contributions equal to the normal |
| |||||||
| |||||||
1 | costs (as defined in Section 15-155)
resulting from that | ||||||
2 | service; all or any part of these contributions may be
paid on | ||||||
3 | the employee's behalf or picked up for tax purposes (if | ||||||
4 | authorized
under federal law) by the teacher organization.
| ||||||
5 | A person who is an employee as defined in this subsection | ||||||
6 | (i) may establish
service credit for similar employment prior | ||||||
7 | to becoming an employee under this
subsection by paying to the | ||||||
8 | System for that employment the contributions
specified in this | ||||||
9 | subsection, plus interest at the effective rate from the
date | ||||||
10 | of service to the date of payment. However, credit shall not be | ||||||
11 | granted
under this subsection for any such prior employment for | ||||||
12 | which the applicant
received credit under any other provision | ||||||
13 | of this Code, or during which
the applicant was on a leave of | ||||||
14 | absence under Section 15-113.2.
| ||||||
15 | (j) A person employed by the State Board of Higher | ||||||
16 | Education in a position with the Illinois Century Network as of | ||||||
17 | June 30, 2004 shall be considered to be an employee for so long | ||||||
18 | as he or she remains continuously employed after that date by | ||||||
19 | the Department of Central Management Services in a position | ||||||
20 | with the Illinois Century Network, the Bureau of Communication | ||||||
21 | and Computer Services, or, if applicable, any successor bureau
| ||||||
22 | and meets the requirements of subsection (a).
| ||||||
23 | (k) In the case of doubt as to whether any person is an | ||||||
24 | employee within the meaning of this Section, the decision of | ||||||
25 | the Board shall be final. | ||||||
26 | (Source: P.A. 97-651, eff. 1-5-12.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-108.1 new) | ||||||
2 | Sec. 15-108.1. Tier I employee. "Tier I employee": An | ||||||
3 | employee under this Article, other than a participant in the | ||||||
4 | self-managed plan under Section 15-158.2, who first became a | ||||||
5 | member or participant before January 1, 2011 under any | ||||||
6 | reciprocal retirement system or pension fund established under | ||||||
7 | this Code other than a retirement system or pension fund | ||||||
8 | established under Article 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
9 | However, for the purposes of the election under Section | ||||||
10 | 15-132.9 and the consequences arising from that election, "Tier | ||||||
11 | I employee" does not include a participant under this Article | ||||||
12 | who would qualify as a Tier I employee but who has made an | ||||||
13 | irrevocable election on or before January 1, 2013 to retire | ||||||
14 | from service pursuant to the terms of a collective bargaining | ||||||
15 | agreement in effect on January 1, 2013, excluding any | ||||||
16 | extension, amendment, or renewal of that agreement on or after | ||||||
17 | that date, and has notified the System of that election. | ||||||
18 | (40 ILCS 5/15-108.2 new) | ||||||
19 | Sec. 15-108.2. Tier I retiree. "Tier I retiree": A former | ||||||
20 | Tier I employee who is receiving a retirement annuity. However, | ||||||
21 | for the purposes of the election under Section 15-132.9 and the | ||||||
22 | consequences arising from that election, "Tier I retiree" also | ||||||
23 | includes a participant under this Article who would qualify as | ||||||
24 | a Tier I employee but who has made an irrevocable election on |
| |||||||
| |||||||
1 | or before January 1, 2013 to retire from service pursuant to | ||||||
2 | the terms of a collective bargaining agreement in effect on | ||||||
3 | January 1, 2013, excluding any extension, amendment, or renewal | ||||||
4 | of that agreement on or after that date, and has notified the | ||||||
5 | System of that election. | ||||||
6 | A person does not become a Tier I retiree by virtue of | ||||||
7 | receiving a reversionary, survivors, beneficiary or disability | ||||||
8 | annuity.
| ||||||
9 | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| ||||||
10 | Sec. 15-111. Earnings.
"Earnings": An amount paid for | ||||||
11 | personal services equal to the sum of
the basic compensation | ||||||
12 | plus extra compensation for summer teaching,
overtime or other | ||||||
13 | extra service. For periods for which an employee receives
| ||||||
14 | service credit under subsection (c) of Section 15-113.1 or | ||||||
15 | Section 15-113.2,
earnings are equal to the basic compensation | ||||||
16 | on which contributions are
paid by the employee during such | ||||||
17 | periods. Compensation for employment which is
irregular, | ||||||
18 | intermittent and temporary shall not be considered earnings, | ||||||
19 | unless
the participant is also receiving earnings from the | ||||||
20 | employer as an employee
under Section 15-107.
| ||||||
21 | With respect to transition pay paid by the University of | ||||||
22 | Illinois to a
person who was a participating employee employed | ||||||
23 | in the fire department of
the University of Illinois's | ||||||
24 | Champaign-Urbana campus immediately prior to
the elimination | ||||||
25 | of that fire department:
|
| |||||||
| |||||||
1 | (1) "Earnings" includes transition pay paid to the | ||||||
2 | employee on or after
the effective date of this amendatory | ||||||
3 | Act of the 91st General Assembly.
| ||||||
4 | (2) "Earnings" includes transition pay paid to the | ||||||
5 | employee before the
effective date of this amendatory Act | ||||||
6 | of the 91st General Assembly only if (i)
employee | ||||||
7 | contributions under Section 15-157 have been withheld from | ||||||
8 | that
transition pay or (ii) the employee pays to the System | ||||||
9 | before January 1, 2001
an amount representing employee | ||||||
10 | contributions under Section 15-157 on that
transition pay. | ||||||
11 | Employee contributions under item (ii) may be paid in a | ||||||
12 | lump
sum, by withholding from additional transition pay | ||||||
13 | accruing before January 1,
2001, or in any other manner | ||||||
14 | approved by the System. Upon payment of the
employee | ||||||
15 | contributions on transition pay, the corresponding | ||||||
16 | employer
contributions become an obligation of the State.
| ||||||
17 | Notwithstanding any other provision of this Section, | ||||||
18 | "earnings" does not include any future increase in income | ||||||
19 | offered by an employer under this Article pursuant to the | ||||||
20 | requirements of subsection (c) of Section 15-132.9 that is | ||||||
21 | accepted by a Tier I employee, or a Tier I retiree returning to | ||||||
22 | active service, who has made the election under paragraph (2) | ||||||
23 | of subsection (a) or (a-5) of Section 15-132.9. | ||||||
24 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
25 | (40 ILCS 5/15-112.1 new) |
| |||||||
| |||||||
1 | Sec. 15-112.1. Future increase in income. "Future increase | ||||||
2 | in income": Any increase in income in any form offered by an | ||||||
3 | employer to an employee under this Article after June 30, 2014 | ||||||
4 | that would qualify as "earnings", as defined in Section 15-111, | ||||||
5 | but for the fact that the employer offered the increase in | ||||||
6 | income to the employee on the condition that it not qualify as | ||||||
7 | earnings and the employee accepted the increase in income | ||||||
8 | subject to that condition. The term "future increase in income" | ||||||
9 | does not include an increase in income in any form that is paid | ||||||
10 | to a Tier I employee under an employment contract or collective | ||||||
11 | bargaining agreement that is in effect on the effective date of | ||||||
12 | this Section but does include an increase in income in any form | ||||||
13 | pursuant to an extension, amendment, or renewal of any such | ||||||
14 | employment contract or collective bargaining agreement on or | ||||||
15 | after the effective date of this amendatory Act of the 98th | ||||||
16 | General Assembly. | ||||||
17 | (40 ILCS 5/15-132.9 new) | ||||||
18 | Sec. 15-132.9. Election by Tier I employees and Tier I | ||||||
19 | retirees. | ||||||
20 | (a) Each Tier I employee shall make an irrevocable election | ||||||
21 | either: | ||||||
22 | (1) to agree to item (i) or (ii) as set forth in this | ||||||
23 | paragraph (1): | ||||||
24 | (i) to have the amount of the automatic annual | ||||||
25 | increases in his or her retirement annuity that are |
| |||||||
| |||||||
1 | otherwise provided for in this Article calculated, | ||||||
2 | instead, as provided in subsection (d-1) of Section | ||||||
3 | 15-136, and to waive his or her eligibility for 2 | ||||||
4 | automatic annual increases in retirement annuity as | ||||||
5 | provided in subsection (d-2) of Section 15-157; or | ||||||
6 | (ii) to waive his or her eligibility for 3 | ||||||
7 | automatic annual increases in retirement annuity, as | ||||||
8 | provided in subsection (d-3) of Section 15-136, and to | ||||||
9 | make the contributions set forth in subsection (a-5) of | ||||||
10 | Section 15-157; or | ||||||
11 | (2) to not agree to item (i) or (ii) as set forth in | ||||||
12 | paragraph (1) of this subsection. | ||||||
13 | The election required under this subsection (a) shall be | ||||||
14 | made by each Tier I employee no earlier than February 1, 2014 | ||||||
15 | and no later than May 31, 2014, except that: | ||||||
16 | (i) a person who becomes a Tier I employee under this | ||||||
17 | Article on or after February 1, 2014 must make the election | ||||||
18 | under this subsection (a) within 60 days after becoming a | ||||||
19 | Tier I employee; | ||||||
20 | (ii) a person who returns to active service as a Tier I | ||||||
21 | employee under this Article on or after February 1, 2014 | ||||||
22 | and has not yet made an election under this Section must | ||||||
23 | make the election under this subsection (a) within 60 days | ||||||
24 | after returning to active service as a Tier I employee; and | ||||||
25 | (iii) a person who made the election under subsection | ||||||
26 | (a-5) as a Tier I retiree remains bound by that election |
| |||||||
| |||||||
1 | and shall not make a later election under this subsection | ||||||
2 | (a). | ||||||
3 | If a Tier I employee fails for any reason to make a | ||||||
4 | required election under this subsection within the time | ||||||
5 | specified, then the employee shall be deemed to have made the | ||||||
6 | election under paragraph (2) of this subsection. | ||||||
7 | (a-5) Each Tier I retiree shall make an irrevocable | ||||||
8 | election either: | ||||||
9 | (1) to agree to the following: | ||||||
10 | (i) to have the amount of the automatic annual | ||||||
11 | increases in his or her retirement annuity calculated | ||||||
12 | without regard to subsection (d-1), (d-2), or (d-3) of | ||||||
13 | Section 15-136; and | ||||||
14 | (ii) to waive his or her eligibility for 2 | ||||||
15 | automatic annual increases in retirement annuity as | ||||||
16 | provided in subsection (d-4) of Section 15-136; or | ||||||
17 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
18 | paragraph (1) of this subsection. | ||||||
19 | The election required under this subsection (a-5) shall be | ||||||
20 | made by each Tier I retiree no earlier than February 1, 2014 | ||||||
21 | and no later than May 31, 2014, except that: | ||||||
22 | (i) a person who becomes a Tier I retiree under this | ||||||
23 | Article on or after February 1, 2014 must make the election | ||||||
24 | under this subsection (a-5) within 60 days after becoming a | ||||||
25 | Tier I retiree; and | ||||||
26 | (ii) a person who made the election under subsection |
| |||||||
| |||||||
1 | (a) as a Tier I employee remains bound by that election and | ||||||
2 | shall not make a later election under this subsection | ||||||
3 | (a-5). | ||||||
4 | If a Tier I retiree fails for any reason to make a required | ||||||
5 | election under this subsection within the time specified, then | ||||||
6 | the Tier I retiree shall be deemed to have made the election | ||||||
7 | under paragraph (2) of this subsection. | ||||||
8 | (a-10) All elections under subsection (a) or (a-5) that are | ||||||
9 | made or deemed to be made before June 1, 2014 shall take effect | ||||||
10 | on July 1, 2014. Elections that are made or deemed to be made | ||||||
11 | on or after June 1, 2014 shall take effect on the first day of | ||||||
12 | the month following the month in which the election is made or | ||||||
13 | deemed to be made. | ||||||
14 | (b) As adequate and legal consideration provided under this | ||||||
15 | amendatory Act of the 98th General Assembly for making an | ||||||
16 | election under paragraph (1) of subsection (a) of this Section, | ||||||
17 | any future increases in income offered by an employer under | ||||||
18 | this Article to a Tier I employee who has made an election | ||||||
19 | under paragraph (1) of subsection (a) of this Section shall be | ||||||
20 | offered expressly and irrevocably as constituting earnings | ||||||
21 | under Section 15-111. In addition, a Tier I employee who has | ||||||
22 | made an election under item (i) of paragraph (1) of subsection | ||||||
23 | (a) of this Section shall receive the right to also participate | ||||||
24 | in the optional cash balance plan established under Section | ||||||
25 | 1-162. | ||||||
26 | As adequate and legal consideration provided under this |
| |||||||
| |||||||
1 | amendatory Act of the 98th General Assembly for making an | ||||||
2 | election under paragraph (1) of subsection (a-5) of this | ||||||
3 | Section, any future increases in income offered by an employer | ||||||
4 | under this Article to a Tier I retiree who returns to active | ||||||
5 | service after having made the election under paragraph (1) of | ||||||
6 | subsection (a-5) of this Section shall be offered expressly and | ||||||
7 | irrevocably as constituting earnings under Section 15-111. | ||||||
8 | (c) A Tier I employee who makes the election under | ||||||
9 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
10 | subject to either item (i) or (ii) set forth in paragraph (1) | ||||||
11 | of subsection (a) of this Section. However, any future | ||||||
12 | increases in income offered by an employer under this Article | ||||||
13 | to a Tier I employee who has made the election under paragraph | ||||||
14 | (2) of subsection (a) of this Section shall be offered by the | ||||||
15 | employer expressly and irrevocably as not constituting | ||||||
16 | earnings under Section 15-111, and the employee may not accept | ||||||
17 | any future increase in income that is offered in violation of | ||||||
18 | this requirement. In addition, a Tier I employee who has made | ||||||
19 | the election under paragraph (2) of subsection (a) of this | ||||||
20 | Section shall not receive the right to participate in the | ||||||
21 | optional cash balance plan established under Section 1-162. | ||||||
22 | A Tier I retiree who makes the election under paragraph (2) | ||||||
23 | of subsection (a-5) of this Section shall not be subject to | ||||||
24 | either item (i) or (ii) set forth in paragraph (1) of | ||||||
25 | subsection (a-5) of this Section. However, any future increases | ||||||
26 | in income offered by an employer under this Article to a Tier I |
| |||||||
| |||||||
1 | retiree who returns to active service and has made the election | ||||||
2 | under paragraph (2) of subsection (a-5) of this Section shall | ||||||
3 | be offered by the employer expressly and irrevocably as not | ||||||
4 | constituting earnings under Section 15-111, and the employee | ||||||
5 | may not accept any future increase in income that is offered in | ||||||
6 | violation of this requirement. In addition, a Tier I retiree | ||||||
7 | who returns to active service and has made the election under | ||||||
8 | paragraph (2) of subsection (a-5) of this Section shall not | ||||||
9 | receive the right to participate in the optional cash balance | ||||||
10 | plan established under Section 1-162. | ||||||
11 | (d) The System shall make a good faith effort to contact | ||||||
12 | each Tier I employee and Tier I retiree subject to this | ||||||
13 | Section. The System shall mail information describing the | ||||||
14 | required election to each Tier I employee and Tier I retiree by | ||||||
15 | United States Postal Service mail to his or her last known | ||||||
16 | address on file with the System. If the Tier I employee or Tier | ||||||
17 | I retiree is not responsive to other means of contact, it is | ||||||
18 | sufficient for the System to publish the details of any | ||||||
19 | required elections on its website or to publish those details | ||||||
20 | in a regularly published newsletter or other existing public | ||||||
21 | forum. | ||||||
22 | Tier I employees and Tier I retirees who are subject to | ||||||
23 | this Section shall be provided with an election packet | ||||||
24 | containing information regarding their options, as well as the | ||||||
25 | forms necessary to make the required election. Upon request, | ||||||
26 | the System shall offer Tier I employees and Tier I retirees an |
| |||||||
| |||||||
1 | opportunity to receive information from the System before | ||||||
2 | making the required election. The information may consist of | ||||||
3 | video materials, group presentations, individual consultation | ||||||
4 | with a member or authorized representative of the System in | ||||||
5 | person or by telephone or other electronic means, or any | ||||||
6 | combination of those methods. The System shall not provide | ||||||
7 | advice or counseling with respect to which election a Tier I | ||||||
8 | employee or Tier I retiree should make or specific to the legal | ||||||
9 | or tax circumstances of or consequences to the Tier I employee | ||||||
10 | or Tier I retiree. | ||||||
11 | The System shall inform Tier I employees and Tier I | ||||||
12 | retirees in the election packet required under this subsection | ||||||
13 | that the Tier I employee or Tier I retiree may also wish to | ||||||
14 | obtain information and counsel relating to the election | ||||||
15 | required under this Section from any other available source, | ||||||
16 | including but not limited to labor organizations and private | ||||||
17 | counsel. | ||||||
18 | In no event shall the System, its staff, or the Board be | ||||||
19 | held liable for any information given to a member, beneficiary, | ||||||
20 | or annuitant regarding the elections under this Section. The | ||||||
21 | System shall coordinate with the Illinois Department of Central | ||||||
22 | Management Services and each other retirement system | ||||||
23 | administering an election in accordance with this amendatory | ||||||
24 | Act of the 98th General Assembly to provide information | ||||||
25 | concerning the impact of the election set forth in this | ||||||
26 | Section. |
| |||||||
| |||||||
1 | (e) Notwithstanding any other provision of law, an employer | ||||||
2 | under this Article is required to offer any future increases in | ||||||
3 | income expressly and irrevocably as not constituting | ||||||
4 | "earnings" under Section 15-111 to any Tier I employee, or Tier | ||||||
5 | I retiree returning to active service, who has made an election | ||||||
6 | under paragraph (2) of subsection (a) or (a-5) of this Section. | ||||||
7 | A Tier I employee, or Tier I retiree returning to active | ||||||
8 | service, who has made an election under paragraph (2) of | ||||||
9 | subsection (a) or (a-5) of this Section shall not accept any | ||||||
10 | future increase in income that is offered by an employer under | ||||||
11 | this Article in violation of the requirement set forth in this | ||||||
12 | subsection. | ||||||
13 | (f) A member's election under this Section is not a | ||||||
14 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
15 | of this Code. | ||||||
16 | (g) An employee who has made the election under item (i) of | ||||||
17 | paragraph (1) of subsection (a) of this Section may elect to | ||||||
18 | participate in the optional cash balance plan under Section | ||||||
19 | 1-162. | ||||||
20 | The election to participate in the optional cash balance | ||||||
21 | plan shall be made in writing, in the manner provided by the | ||||||
22 | applicable retirement system. | ||||||
23 | (h) No provision of this Section shall be interpreted in a | ||||||
24 | way that would cause the System to cease to be a qualified plan | ||||||
25 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
26 | (i) If this Section is determined to be unconstitutional or |
| |||||||
| |||||||
1 | otherwise invalid by a final unappealable decision of an | ||||||
2 | Illinois court or a court of competent jurisdiction as applied | ||||||
3 | to Tier I employees but not as applied to Tier I retirees, then | ||||||
4 | this Section and the changes deriving from the election | ||||||
5 | required under this Section shall be null and void as applied | ||||||
6 | to Tier I employees but shall remain in full effect for Tier I | ||||||
7 | retirees. | ||||||
8 | (j) If this Section is determined to be unconstitutional or | ||||||
9 | otherwise invalid by a final unappealable decision of an | ||||||
10 | Illinois court or a court of competent jurisdiction as applied | ||||||
11 | to Tier I retirees but not as applied to Tier I employees, then | ||||||
12 | this Section and the changes deriving from the election | ||||||
13 | required under this Section shall be null and void as applied | ||||||
14 | to Tier I retirees but shall remain in full effect for Tier I | ||||||
15 | employees. | ||||||
16 | (k) If an election created by this amendatory Act in any | ||||||
17 | other Article of this Code or any change deriving from that | ||||||
18 | election is determined to be unconstitutional or otherwise | ||||||
19 | invalid by a final unappealable decision of an Illinois court | ||||||
20 | or a court of competent jurisdiction, the invalidity of that | ||||||
21 | provision shall not in any way affect the validity of this | ||||||
22 | Section or the changes deriving from the election required | ||||||
23 | under this Section.
| ||||||
24 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
25 | Sec. 15-136. Retirement annuities - Amount. The provisions |
| |||||||
| |||||||
1 | of this
Section 15-136 apply only to those participants who are | ||||||
2 | participating in the
traditional benefit package or the | ||||||
3 | portable benefit package and do not
apply to participants who | ||||||
4 | are participating in the self-managed plan.
| ||||||
5 | (a) The amount of a participant's retirement annuity, | ||||||
6 | expressed in the form
of a single-life annuity, shall be | ||||||
7 | determined by whichever of the following
rules is applicable | ||||||
8 | and provides the largest annuity:
| ||||||
9 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
10 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
11 | for each of the next 10 years of
service, 2.10% for each year | ||||||
12 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
13 | each year in excess of 30; or for persons who retire on or
| ||||||
14 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
15 | each year of
service.
| ||||||
16 | Rule 2: The retirement annuity shall be the sum of the | ||||||
17 | following,
determined from amounts credited to the participant | ||||||
18 | in accordance with the
actuarial tables and the effective rate | ||||||
19 | of interest in effect at the
time the retirement annuity | ||||||
20 | begins:
| ||||||
21 | (i) the normal annuity which can be provided on an | ||||||
22 | actuarially
equivalent basis, by the accumulated normal | ||||||
23 | contributions as of
the date the annuity begins;
| ||||||
24 | (ii) an annuity from employer contributions of an | ||||||
25 | amount equal to that
which can be provided on an | ||||||
26 | actuarially equivalent basis from the accumulated
normal |
| |||||||
| |||||||
1 | contributions made by the participant under Section | ||||||
2 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
3 | accumulated normal contributions made by
the participant; | ||||||
4 | and
| ||||||
5 | (iii) the annuity that can be provided on an | ||||||
6 | actuarially equivalent basis
from the entire contribution | ||||||
7 | made by the participant under Section 15-113.3.
| ||||||
8 | For the purpose of calculating an annuity under this Rule | ||||||
9 | 2, neither the contribution required under subsection (a-1) of | ||||||
10 | Section 15-157 nor the contribution required under subsection | ||||||
11 | (a-5) of that Section shall be considered when determining the | ||||||
12 | participant's accumulated normal contributions under clause | ||||||
13 | (i) or the employer contribution under clause (ii). | ||||||
14 | With respect to a police officer or firefighter who retires | ||||||
15 | on or after
August 14, 1998, the accumulated normal | ||||||
16 | contributions taken into account under
clauses (i) and (ii) of | ||||||
17 | this Rule 2 shall include the additional normal
contributions | ||||||
18 | made by the police officer or firefighter under Section
| ||||||
19 | 15-157(a).
| ||||||
20 | The amount of a retirement annuity calculated under this | ||||||
21 | Rule 2 shall
be computed solely on the basis of the | ||||||
22 | participant's accumulated normal
contributions, as specified | ||||||
23 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
24 | or employer contribution for early retirement under
Section | ||||||
25 | 15-136.2 nor any other employer contribution shall be used in | ||||||
26 | the
calculation of the amount of a retirement annuity under |
| |||||||
| |||||||
1 | this Rule 2.
| ||||||
2 | This amendatory Act of the 91st General Assembly is a | ||||||
3 | clarification of
existing law and applies to every participant | ||||||
4 | and annuitant without regard to
whether status as an employee | ||||||
5 | terminates before the effective date of this
amendatory Act.
| ||||||
6 | This Rule 2 does not apply to a person who first becomes an | ||||||
7 | employee under this Article on or after July 1, 2005.
| ||||||
8 | Rule 3: The retirement annuity of a participant who is | ||||||
9 | employed
at least one-half time during the period on which his | ||||||
10 | or her final rate of
earnings is based, shall be equal to the | ||||||
11 | participant's years of service
not to exceed 30, multiplied by | ||||||
12 | (1) $96 if the participant's final rate
of earnings is less | ||||||
13 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
14 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
15 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
16 | the final rate
of earnings is at least $5,500 but less than | ||||||
17 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
18 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
19 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
20 | the final rate of earnings is at least $8,500 but
less than | ||||||
21 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
22 | more, except that the annuity for those persons having made an | ||||||
23 | election under
Section 15-154(a-1) shall be calculated and | ||||||
24 | payable under the portable
retirement benefit program pursuant | ||||||
25 | to the provisions of Section 15-136.4.
| ||||||
26 | Rule 4: A participant who is at least age 50 and has 25 or |
| |||||||
| |||||||
1 | more years of
service as a police officer or firefighter, and a | ||||||
2 | participant who is age 55 or
over and has at least 20 but less | ||||||
3 | than 25 years of service as a police officer
or firefighter, | ||||||
4 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
5 | final rate of earnings for each of the first 10 years of | ||||||
6 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
7 | the next 10 years of service as a
police officer or | ||||||
8 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
9 | officer or firefighter in excess of 20. The retirement annuity | ||||||
10 | for all other
service shall be computed under Rule 1.
| ||||||
11 | For purposes of this Rule 4, a participant's service as a | ||||||
12 | firefighter
shall also include the following:
| ||||||
13 | (i) service that is performed while the person is an | ||||||
14 | employee under
subsection (h) of Section 15-107; and
| ||||||
15 | (ii) in the case of an individual who was a | ||||||
16 | participating employee
employed in the fire department of | ||||||
17 | the University of Illinois's
Champaign-Urbana campus | ||||||
18 | immediately prior to the elimination of that fire
| ||||||
19 | department and who immediately after the elimination of | ||||||
20 | that fire department
transferred to another job with the | ||||||
21 | University of Illinois, service performed
as an employee of | ||||||
22 | the University of Illinois in a position other than police
| ||||||
23 | officer or firefighter, from the date of that transfer | ||||||
24 | until the employee's
next termination of service with the | ||||||
25 | University of Illinois.
| ||||||
26 | Rule 5: The retirement annuity of a participant who elected |
| |||||||
| |||||||
1 | early
retirement under the provisions of Section 15-136.2 and | ||||||
2 | who, on or before
February 16, 1995, brought administrative | ||||||
3 | proceedings pursuant to the
administrative rules adopted by the | ||||||
4 | System to challenge the calculation of his
or her retirement | ||||||
5 | annuity shall be the sum of the following, determined from
| ||||||
6 | amounts credited to the participant in accordance with the | ||||||
7 | actuarial tables and
the prescribed rate of interest in effect | ||||||
8 | at the time the retirement annuity
begins:
| ||||||
9 | (i) the normal annuity which can be provided on an | ||||||
10 | actuarially equivalent
basis, by the accumulated normal | ||||||
11 | contributions as of the date the annuity
begins; and
| ||||||
12 | (ii) an annuity from employer contributions of an | ||||||
13 | amount equal to that
which can be provided on an | ||||||
14 | actuarially equivalent basis from the accumulated
normal | ||||||
15 | contributions made by the participant under Section | ||||||
16 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
17 | accumulated normal contributions made by the
participant; | ||||||
18 | and
| ||||||
19 | (iii) an annuity which can be provided on an | ||||||
20 | actuarially equivalent basis
from the employee | ||||||
21 | contribution for early retirement under Section 15-136.2, | ||||||
22 | and
an annuity from employer contributions of an amount | ||||||
23 | equal to that which can be
provided on an actuarially | ||||||
24 | equivalent basis from the employee contribution for
early | ||||||
25 | retirement under Section 15-136.2.
| ||||||
26 | In no event shall a retirement annuity under this Rule 5 be |
| |||||||
| |||||||
1 | lower than the
amount obtained by adding (1) the monthly amount | ||||||
2 | obtained by dividing the
combined employee and employer | ||||||
3 | contributions made under Section 15-136.2 by the
System's | ||||||
4 | annuity factor for the age of the participant at the beginning | ||||||
5 | of the
annuity payment period and (2) the amount equal to the | ||||||
6 | participant's annuity if
calculated under Rule 1, reduced under | ||||||
7 | Section 15-136(b) as if no
contributions had been made under | ||||||
8 | Section 15-136.2.
| ||||||
9 | With respect to a participant who is qualified for a | ||||||
10 | retirement annuity under
this Rule 5 whose retirement annuity | ||||||
11 | began before the effective date of this
amendatory Act of the | ||||||
12 | 91st General Assembly, and for whom an employee
contribution | ||||||
13 | was made under Section 15-136.2, the System shall recalculate | ||||||
14 | the
retirement annuity under this Rule 5 and shall pay any | ||||||
15 | additional amounts due
in the manner provided in Section | ||||||
16 | 15-186.1 for benefits mistakenly set too low.
| ||||||
17 | The amount of a retirement annuity calculated under this | ||||||
18 | Rule 5 shall be
computed solely on the basis of those | ||||||
19 | contributions specifically set forth in
this Rule 5. Except as | ||||||
20 | provided in clause (iii) of this Rule 5, neither an
employee | ||||||
21 | nor employer contribution for early retirement under Section | ||||||
22 | 15-136.2,
nor any other employer contribution, shall be used in | ||||||
23 | the calculation of the
amount of a retirement annuity under | ||||||
24 | this Rule 5.
| ||||||
25 | The General Assembly has adopted the changes set forth in | ||||||
26 | Section 25 of this
amendatory Act of the 91st General Assembly |
| |||||||
| |||||||
1 | in recognition that the decision of
the Appellate Court for the | ||||||
2 | Fourth District in Mattis v. State Universities
Retirement | ||||||
3 | System et al. might be deemed to give some right to the | ||||||
4 | plaintiff in
that case. The changes made by Section 25 of this | ||||||
5 | amendatory Act of the 91st
General Assembly are a legislative | ||||||
6 | implementation of the decision of the
Appellate Court for the | ||||||
7 | Fourth District in Mattis v. State Universities
Retirement | ||||||
8 | System et al. with respect to that plaintiff.
| ||||||
9 | The changes made by Section 25 of this amendatory Act of | ||||||
10 | the 91st General
Assembly apply without regard to whether the | ||||||
11 | person is in service as an
employee on or after its effective | ||||||
12 | date.
| ||||||
13 | (b) The retirement annuity provided under Rules 1 and 3 | ||||||
14 | above shall be
reduced by 1/2 of 1% for each month the | ||||||
15 | participant is under age 60 at the
time of retirement. However, | ||||||
16 | this reduction shall not apply in the following
cases:
| ||||||
17 | (1) For a disabled participant whose disability | ||||||
18 | benefits have been
discontinued because he or she has | ||||||
19 | exhausted eligibility for disability
benefits under clause | ||||||
20 | (6) of Section 15-152;
| ||||||
21 | (2) For a participant who has at least the number of | ||||||
22 | years of service
required to retire at any age under | ||||||
23 | subsection (a) of Section 15-135; or
| ||||||
24 | (3) For that portion of a retirement annuity which has | ||||||
25 | been provided on
account of service of the participant | ||||||
26 | during periods when he or she performed
the duties of a |
| |||||||
| |||||||
1 | police officer or firefighter, if these duties were | ||||||
2 | performed
for at least 5 years immediately preceding the | ||||||
3 | date the retirement annuity
is to begin.
| ||||||
4 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
5 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
6 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
7 | Code of 1986, as such Section may be
amended from time to time | ||||||
8 | and as such benefit limits shall be adjusted by
the | ||||||
9 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
10 | earnings.
| ||||||
11 | (d) Subject to the provisions of subsections (d-1), (d-2), | ||||||
12 | (d-3), and (d-4), an An annuitant whose status as an employee | ||||||
13 | terminates after August 14,
1969 shall receive automatic | ||||||
14 | increases in his or her retirement annuity as
follows:
| ||||||
15 | Effective January 1 immediately following the date the | ||||||
16 | retirement annuity
begins, the annuitant shall receive an | ||||||
17 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
18 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
19 | Rule 3, Rule 4, or Rule 5, contained in this
Section, | ||||||
20 | multiplied by
the number of full months which elapsed from the | ||||||
21 | date the retirement annuity
payments began to January 1, 1972, | ||||||
22 | plus 0.1667% of such annuity, multiplied by
the number of full | ||||||
23 | months which elapsed from January 1, 1972, or the date the
| ||||||
24 | retirement annuity payments began, whichever is later, to | ||||||
25 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
26 | number of full months which elapsed
from January 1, 1978, or |
| |||||||
| |||||||
1 | the date the retirement annuity payments began,
whichever is | ||||||
2 | later, to the effective date of the increase.
| ||||||
3 | The annuitant shall receive an increase in his or her | ||||||
4 | monthly retirement
annuity on each January 1 thereafter during | ||||||
5 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
6 | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | ||||||
7 | this Section. The change made under this subsection by P.A. | ||||||
8 | 81-970 is
effective January 1, 1980 and applies to each | ||||||
9 | annuitant whose status as
an employee terminates before or | ||||||
10 | after that date.
| ||||||
11 | Beginning January 1, 1990, and except as provided in | ||||||
12 | subsection (d-1), all automatic annual increases payable under
| ||||||
13 | this Section shall be calculated as a percentage of the total | ||||||
14 | annuity
payable at the time of the increase, including all | ||||||
15 | increases previously
granted under this Article.
| ||||||
16 | The change made in this subsection by P.A. 85-1008 is | ||||||
17 | effective January
26, 1988, and is applicable without regard to | ||||||
18 | whether status as an employee
terminated before that date.
| ||||||
19 | (d-1) Notwithstanding any other provision of this Article, | ||||||
20 | for a Tier I employee who made the election under item (i) of | ||||||
21 | paragraph (1) of subsection (a) of Section 15-132.9, the amount | ||||||
22 | of each automatic annual increase in retirement annuity | ||||||
23 | occurring on or after the effective date of that election, | ||||||
24 | other than the initial increase, shall be 3% of the originally | ||||||
25 | granted retirement annuity. | ||||||
26 | (d-2) Notwithstanding any other provision of this Article, |
| |||||||
| |||||||
1 | for a Tier I employee who made the election under item (i) of | ||||||
2 | paragraph (1) of subsection (a) of Section 15-132.9, once the | ||||||
3 | first annual increase under this Section has been granted, the | ||||||
4 | next 2 scheduled annual increases shall be skipped, and | ||||||
5 | thereafter all annual increases shall be granted. | ||||||
6 | (d-3) Notwithstanding any other provision of this Article, | ||||||
7 | for a Tier I employee who made the election under item (ii) of | ||||||
8 | paragraph (1) of subsection (a) of Section 15-132.9, once the | ||||||
9 | first annual increase under this Section has been granted, the | ||||||
10 | next 3 scheduled annual increases shall be skipped, and | ||||||
11 | thereafter all annual increases shall be granted. | ||||||
12 | (d-4) Notwithstanding any other provision of this Article, | ||||||
13 | for a Tier I retiree who made the election under paragraph (1) | ||||||
14 | of subsection (a-5) of Section 15-132.9: | ||||||
15 | (1) if the Tier I retiree has not received the first | ||||||
16 | annual increase under this Section as of the effective date | ||||||
17 | of this amendatory Act of the 98th General Assembly, then | ||||||
18 | once the first annual increase under this Section has been | ||||||
19 | granted, the next scheduled annual increase shall be | ||||||
20 | skipped, the following annual increase shall be granted, | ||||||
21 | the next annual increase shall be skipped, and thereafter | ||||||
22 | all annual increases shall be granted; and | ||||||
23 | (2) if the Tier I retiree has received the first annual | ||||||
24 | increase under this Section as of the effective date of | ||||||
25 | this amendatory Act of the 98th General Assembly, then the | ||||||
26 | next annual increase after that effective date shall be |
| |||||||
| |||||||
1 | skipped, the following annual increase shall be granted, | ||||||
2 | the next annual increase shall be skipped, and thereafter | ||||||
3 | all annual increases shall be granted. | ||||||
4 | (e) If, on January 1, 1987, or the date the retirement | ||||||
5 | annuity payment
period begins, whichever is later, the sum of | ||||||
6 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
7 | Section
and the automatic annual increases provided under the | ||||||
8 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
9 | the retirement
annuity which would be provided by Rule 3, the | ||||||
10 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
11 | the date the
retirement annuity payment period begins, | ||||||
12 | whichever is later, to the amount
which would be provided by | ||||||
13 | Rule 3 of this Section. Such increased
amount shall be | ||||||
14 | considered as the retirement annuity in determining
benefits | ||||||
15 | provided under other Sections of this Article. This paragraph
| ||||||
16 | applies without regard to whether status as an employee | ||||||
17 | terminated before the
effective date of this amendatory Act of | ||||||
18 | 1987, provided that the annuitant was
employed at least | ||||||
19 | one-half time during the period on which the final rate of
| ||||||
20 | earnings was based.
| ||||||
21 | (f) A participant is entitled to such additional annuity as | ||||||
22 | may be provided
on an actuarially equivalent basis, by any | ||||||
23 | accumulated
additional contributions to his or her credit. | ||||||
24 | However,
the additional contributions made by the participant | ||||||
25 | toward the automatic
increases in annuity provided under this | ||||||
26 | Section shall not be taken into
account in determining the |
| |||||||
| |||||||
1 | amount of such additional annuity.
| ||||||
2 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
3 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
4 | or in part to an employer, and (2)
a participant transfers | ||||||
5 | employment from such governmental unit to such employer
within | ||||||
6 | 6 months after the transfer of the function, and (3) the sum of | ||||||
7 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
8 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
9 | participant by all other retirement
systems covered by Article | ||||||
10 | 20, and (C) the initial primary insurance amount to
which the | ||||||
11 | participant is entitled under the Social Security Act, is less | ||||||
12 | than
the retirement annuity which would have been payable if | ||||||
13 | all of the
participant's pension credits validated under | ||||||
14 | Section 20-109 had been validated
under this system, a | ||||||
15 | supplemental annuity equal to the difference in such
amounts | ||||||
16 | shall be payable to the participant.
| ||||||
17 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
18 | retirement annuity on or before January 1, 1971 shall have his | ||||||
19 | or her
retirement annuity then being paid increased $1 per | ||||||
20 | month for
each year of creditable service. On January 1, 1982, | ||||||
21 | an annuitant whose
retirement annuity began on or before | ||||||
22 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
23 | being paid increased $1 per month for each year of
creditable | ||||||
24 | service.
| ||||||
25 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
26 | annuity began on or
before January 1, 1977, shall have the |
| |||||||
| |||||||
1 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
2 | per year of creditable service times the number of years
that | ||||||
3 | have elapsed since the annuity began.
| ||||||
4 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| ||||||
5 | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
| ||||||
6 | Sec. 15-156. Obligations of State. | ||||||
7 | (a) The payment of (1) the
required State contributions, | ||||||
8 | (2) all benefits
granted under this system and (3) all expenses | ||||||
9 | in connection with the
administration and operation thereof are | ||||||
10 | obligations of the State of
Illinois to the extent specified in | ||||||
11 | this Article. The accumulated
employee normal, additional and | ||||||
12 | survivors insurance contributions
credited to the accounts of | ||||||
13 | active and inactive participants
shall not be used to pay the | ||||||
14 | State's share of the obligations.
| ||||||
15 | (b) The State shall be contractually obligated to | ||||||
16 | contribute to the System in each State fiscal year an amount | ||||||
17 | not less than the sum required in Section 15-155 as that | ||||||
18 | Section existed prior to the effective date of this amendatory | ||||||
19 | Act of the 98th General Assembly. | ||||||
20 | The obligations created under this subsection (b) are | ||||||
21 | contractual obligations protected and enforceable under | ||||||
22 | Article I, Section 16 and Article XIII, Section 5 of the | ||||||
23 | Illinois Constitution. | ||||||
24 | Notwithstanding any other provision of law, if the State | ||||||
25 | fails to pay in a State fiscal year the amount guaranteed under |
| |||||||
| |||||||
1 | this subsection (b), the System may bring a mandamus action in | ||||||
2 | the Circuit Court of Champaign County to compel the State to | ||||||
3 | make that payment, irrespective of other remedies that
may be | ||||||
4 | available to the System. It shall be the mandatory fiduciary | ||||||
5 | obligation of the Board of the System to bring that action if | ||||||
6 | the State fails to pay in the fiscal year the amount guaranteed | ||||||
7 | under this subsection (b). Before commencing that action, the | ||||||
8 | Board shall submit a voucher for contributions required under | ||||||
9 | Section 15-155. If the State fails to pay a vouchered amount | ||||||
10 | within 90 days after receiving a voucher for that amount, then | ||||||
11 | the Board shall submit a written request to the Comptroller | ||||||
12 | seeking payment of that amount. A copy of the request shall be | ||||||
13 | filed with the Secretary of State, and the Secretary of State | ||||||
14 | shall provide copies of the request to the Governor and General | ||||||
15 | Assembly. No earlier than the 16th day after filing a request | ||||||
16 | with the Secretary, but no later than the 21st day after filing | ||||||
17 | that request, the Board may commence such an action in the | ||||||
18 | Circuit Court. If the Board fails to commence such action on or | ||||||
19 | before the 21st day after filing the request with the Secretary | ||||||
20 | of State, then any Tier I employee or Tier I retiree who made | ||||||
21 | the election under paragraph (1) of subsection (a) or (a-5) of | ||||||
22 | Section 15-132.9 may file a mandamus action against the Board | ||||||
23 | to compel the Board to commence its mandamus action against the | ||||||
24 | State. This subsection (b) constitutes an express waiver of the | ||||||
25 | State's sovereign immunity. In ordering the State to make the | ||||||
26 | required payment, the court may order a reasonable payment |
| |||||||
| |||||||
1 | schedule to enable the State to make the required payment. The | ||||||
2 | obligations and causes of action created under this subsection | ||||||
3 | (b) shall be in addition to any other right or remedy otherwise | ||||||
4 | accorded by common law, or State or federal law, and nothing in | ||||||
5 | this subsection shall be construed to deny, abrogate, impair, | ||||||
6 | or waive any such common law or statutory right or remedy. | ||||||
7 | Any payments required to be made by the State pursuant to | ||||||
8 | this subsection (b) are expressly subordinated to the payment | ||||||
9 | of the principal, interest, and premium, if any, on any
bonded | ||||||
10 | debt obligation of the State or any other State-created entity, | ||||||
11 | either currently outstanding or to
be issued, for which the | ||||||
12 | source of repayment or security thereon is derived directly or | ||||||
13 | indirectly from
tax revenues collected by the State or any | ||||||
14 | other State-created entity. Payments on such bonded
| ||||||
15 | obligations include any statutory fund transfers or other | ||||||
16 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
17 | in State law or bond indentures, into debt service funds or | ||||||
18 | accounts of the State
related to such bonded obligations, | ||||||
19 | consistent with the payment schedules associated with such
| ||||||
20 | obligations. | ||||||
21 | (Source: P.A. 83-1440.)
| ||||||
22 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
23 | Sec. 15-157. Employee Contributions.
| ||||||
24 | (a) Each participating employee
shall make contributions | ||||||
25 | towards the retirement
benefits payable under the retirement |
| |||||||
| |||||||
1 | program applicable to the
employee from each payment
of | ||||||
2 | earnings applicable to employment under this system on and | ||||||
3 | after the
date of becoming a participant as follows: Prior to | ||||||
4 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
5 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
6 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
7 | are to be considered as normal contributions for purposes
of | ||||||
8 | this Article.
| ||||||
9 | Each participant who is a police officer or firefighter | ||||||
10 | shall make normal
contributions of 8% of each payment of | ||||||
11 | earnings applicable to employment as a
police officer or | ||||||
12 | firefighter under this system on or after September 1, 1981,
| ||||||
13 | unless he or she files with the board within 60 days after the | ||||||
14 | effective date
of this amendatory Act of 1991 or 60 days after | ||||||
15 | the board receives notice that
he or she is employed as a | ||||||
16 | police officer or firefighter, whichever is later,
a written | ||||||
17 | notice waiving the retirement formula provided by Rule 4 of | ||||||
18 | Section
15-136. This waiver shall be irrevocable. If a | ||||||
19 | participant had met the
conditions set forth in Section | ||||||
20 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
21 | 1991 but failed to make the additional normal contributions
| ||||||
22 | required by this paragraph, he or she may elect to pay the | ||||||
23 | additional
contributions plus compound interest at the | ||||||
24 | effective rate. If such payment
is received by the board, the | ||||||
25 | service shall be considered as police officer
service in | ||||||
26 | calculating the retirement annuity under Rule 4 of Section |
| |||||||
| |||||||
1 | 15-136.
While performing service described in clause (i) or | ||||||
2 | (ii) of Rule 4 of Section
15-136, a participating employee | ||||||
3 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
4 | of determining the rate of employee contributions
under this | ||||||
5 | Section.
| ||||||
6 | (a-1) In addition to the contributions otherwise required | ||||||
7 | under this Article, an employee who elects to participate in | ||||||
8 | the optional cash balance plan under Section 1-162 shall pay to | ||||||
9 | the System for the purpose of participating in the optional | ||||||
10 | cash balance plan a contribution of 2% of each payment of | ||||||
11 | earnings received while he or she is a participant in the | ||||||
12 | optional cash balance plan. These contributions shall not be | ||||||
13 | used for the purpose of determining any benefit under this | ||||||
14 | Article except as provided in the optional cash balance plan. | ||||||
15 | (a-5) In addition to the contributions otherwise required | ||||||
16 | under this Article, each Tier I participant who made the | ||||||
17 | election under item (ii) of paragraph (1) of subsection (a) of | ||||||
18 | Section 15-132.9 shall also make the following contributions | ||||||
19 | toward the retirement
benefits payable under the retirement | ||||||
20 | program applicable to the
employee from each payment
of | ||||||
21 | earnings applicable to employment under this system: | ||||||
22 | (1) beginning July 1, 2014 and through June 30, 2015, | ||||||
23 | 1% of earnings; and | ||||||
24 | (2) beginning on July 1, 2015, 2% of earnings. | ||||||
25 | Except as otherwise specified, these contributions are to | ||||||
26 | be considered as normal contributions for purposes
of this |
| |||||||
| |||||||
1 | Article. | ||||||
2 | (b) Starting September 1, 1969, each participating | ||||||
3 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
4 | earnings to finance a portion
of the cost of the annual | ||||||
5 | increases in retirement annuity provided under
Section 15-136, | ||||||
6 | except that with respect to participants in the
self-managed | ||||||
7 | plan this additional contribution shall be used to finance the
| ||||||
8 | benefits obtained under that retirement program.
| ||||||
9 | (c) In addition to the amounts described in subsections (a) | ||||||
10 | and (b) of this
Section, each participating employee shall make | ||||||
11 | contributions of 1% of earnings
applicable under this system on | ||||||
12 | and after August 1, 1959. The contributions
made under this | ||||||
13 | subsection (c) shall be considered as survivor's insurance
| ||||||
14 | contributions for purposes of this Article if the employee is | ||||||
15 | covered under
the traditional benefit package, and such | ||||||
16 | contributions shall be considered
as additional contributions | ||||||
17 | for purposes of this Article if the employee is
participating | ||||||
18 | in the self-managed plan or has elected to participate in the
| ||||||
19 | portable benefit package and has completed the applicable | ||||||
20 | one-year waiting
period. Contributions in excess of $80 during | ||||||
21 | any fiscal year beginning before
August 31, 1969 and in excess | ||||||
22 | of $120 during any fiscal year thereafter until
September 1, | ||||||
23 | 1971 shall be considered as additional contributions for | ||||||
24 | purposes
of this Article.
| ||||||
25 | (d) If the board by board rule so permits and subject to | ||||||
26 | such conditions
and limitations as may be specified in its |
| |||||||
| |||||||
1 | rules, a participant may make
other additional contributions of | ||||||
2 | such percentage of earnings or amounts as
the participant shall | ||||||
3 | elect in a written notice thereof received by the board.
| ||||||
4 | (e) That fraction of a participant's total accumulated | ||||||
5 | normal
contributions, the numerator of which is equal to the | ||||||
6 | number of years of
service in excess of that which is required | ||||||
7 | to qualify for the maximum
retirement annuity, and the | ||||||
8 | denominator of which is equal to the total
service of the | ||||||
9 | participant, shall be considered as accumulated additional
| ||||||
10 | contributions. The determination of the applicable maximum | ||||||
11 | annuity and
the adjustment in contributions required by this | ||||||
12 | provision shall be made
as of the date of the participant's | ||||||
13 | retirement.
| ||||||
14 | (f) Notwithstanding the foregoing, a participating | ||||||
15 | employee shall not
be required to make contributions under this | ||||||
16 | Section after the date upon
which continuance of such | ||||||
17 | contributions would otherwise cause his or her
retirement | ||||||
18 | annuity to exceed the maximum retirement annuity as specified | ||||||
19 | in
clause (1) of subsection (c) of Section 15-136.
| ||||||
20 | (g) A participating employee may make contributions for the | ||||||
21 | purchase of
service credit under this Article.
| ||||||
22 | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | ||||||
23 | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | ||||||
24 | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| ||||||
25 | (40 ILCS 5/15-163) (from Ch. 108 1/2, par. 15-163)
|
| |||||||
| |||||||
1 | Sec. 15-163. To consider applications and authorize | ||||||
2 | payments.
| ||||||
3 | To consider and pass on all certifications of employment | ||||||
4 | and applications for annuities and benefits; to
authorize the | ||||||
5 | granting of annuities and benefits; and to limit or suspend
any | ||||||
6 | payment or payments, all in accordance with this Article.
| ||||||
7 | (Source: Laws 1963, p. 161.)
| ||||||
8 | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| ||||||
9 | Sec. 15-165. To certify amounts and submit vouchers.
| ||||||
10 | (a) The Board shall certify to the Governor on or before | ||||||
11 | November 15 of each
year through until November 15, 2011 the | ||||||
12 | appropriation required from State funds for the purposes of | ||||||
13 | this
System for the following fiscal year. The certification | ||||||
14 | under this subsection (a) shall include a copy
of the actuarial | ||||||
15 | recommendations upon which it is based and shall specifically | ||||||
16 | identify the System's projected State normal cost for that | ||||||
17 | fiscal year and the projected State cost for the self-managed | ||||||
18 | plan for that fiscal year .
| ||||||
19 | On or before May 1, 2004, the Board shall recalculate and | ||||||
20 | recertify to
the Governor the amount of the required State | ||||||
21 | contribution to the System for
State fiscal year 2005, taking | ||||||
22 | into account the amounts appropriated to and
received by the | ||||||
23 | System under subsection (d) of Section 7.2 of the General
| ||||||
24 | Obligation Bond Act.
| ||||||
25 | On or before July 1, 2005, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify
to the Governor the amount of the required State
| ||||||
2 | contribution to the System for State fiscal year 2006, taking | ||||||
3 | into account the changes in required State contributions made | ||||||
4 | by this amendatory Act of the 94th General Assembly.
| ||||||
5 | On or before April 1, 2011, the Board shall recalculate and | ||||||
6 | recertify to the Governor the amount of the required State | ||||||
7 | contribution to the System for State fiscal year 2011, applying | ||||||
8 | the changes made by Public Act 96-889 to the System's assets | ||||||
9 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
10 | was approved on that date. | ||||||
11 | (a-5) On or before November 1 of each year, beginning | ||||||
12 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
13 | the Governor, and the General Assembly a proposed certification | ||||||
14 | of the amount of the required State contribution to the System | ||||||
15 | for the next fiscal year, along with all of the actuarial | ||||||
16 | assumptions, calculations, and data upon which that proposed | ||||||
17 | certification is based. On or before January 1 of each year, | ||||||
18 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
19 | preliminary report concerning the proposed certification and | ||||||
20 | identifying, if necessary, recommended changes in actuarial | ||||||
21 | assumptions that the Board must consider before finalizing its | ||||||
22 | certification of the required State contributions. | ||||||
23 | On or before January 15, 2013 and each January 15 | ||||||
24 | thereafter, the Board shall certify to the Governor and the | ||||||
25 | General Assembly the amount of the required State contribution | ||||||
26 | for the next fiscal year. The certification shall include a |
| |||||||
| |||||||
1 | copy of the actuarial
recommendations upon which it is based | ||||||
2 | and shall specifically identify the System's projected State | ||||||
3 | normal cost for that fiscal year and the projected State cost | ||||||
4 | for the self-managed plan for that fiscal year. The Board's | ||||||
5 | certification must note, in a written response to the State | ||||||
6 | Actuary, any deviations from the State Actuary's recommended | ||||||
7 | changes, the reason or reasons for not following the State | ||||||
8 | Actuary's recommended changes, and the fiscal impact of not | ||||||
9 | following the State Actuary's recommended changes on the | ||||||
10 | required State contribution. | ||||||
11 | (b) The Board shall certify to the State Comptroller or | ||||||
12 | employer, as the
case may be, from time to time, by its | ||||||
13 | president and secretary, with its seal
attached, the amounts | ||||||
14 | payable to the System from the various funds.
| ||||||
15 | (c) Beginning in State fiscal year 1996, on or as soon as | ||||||
16 | possible after the
15th day of each month the Board shall | ||||||
17 | submit vouchers for payment of State
contributions to the | ||||||
18 | System, in a total monthly amount of one-twelfth of the
| ||||||
19 | required annual State contribution certified under subsection | ||||||
20 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
21 | General Assembly through June 30, 2004, the Board shall not
| ||||||
22 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
23 | of the
fiscal year 2004 certified contribution amount | ||||||
24 | determined
under this Section after taking into consideration | ||||||
25 | the transfer to the
System under subsection (b) of Section | ||||||
26 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
| |||||||
| |||||||
1 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
2 | funds appropriated to the System for that fiscal year.
| ||||||
3 | If in any month the amount remaining unexpended from all | ||||||
4 | other
appropriations to the System for the applicable fiscal | ||||||
5 | year (including the
appropriations to the System under Section | ||||||
6 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
7 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
8 | amount lawfully vouchered under this Section, the difference | ||||||
9 | shall be paid
from the General Revenue Fund under the | ||||||
10 | continuing appropriation authority
provided in Section 1.1 of | ||||||
11 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
12 | (d) So long as the payments received are the full amount | ||||||
13 | lawfully
vouchered under this Section, payments received by the | ||||||
14 | System under this
Section shall be applied first toward the | ||||||
15 | employer contribution to the
self-managed plan established | ||||||
16 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
17 | the employer's portion of the normal costs of the System,
as | ||||||
18 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
19 | be applied
toward the unfunded actuarial liabilities of the | ||||||
20 | System.
| ||||||
21 | (e) In the event that the System does not receive, as a | ||||||
22 | result of
legislative enactment or otherwise, payments | ||||||
23 | sufficient to
fully fund the employer contribution to the | ||||||
24 | self-managed plan
established under Section 15-158.2 and to | ||||||
25 | fully fund that portion of the
employer's portion of the normal | ||||||
26 | costs of the System, as calculated in
accordance with Section |
| |||||||
| |||||||
1 | 15-155(a-1), then any payments received shall be
applied | ||||||
2 | proportionately to the optional retirement program established | ||||||
3 | under
Section 15-158.2 and to the employer's portion of the | ||||||
4 | normal costs of the
System, as calculated in accordance with | ||||||
5 | Section 15-155(a-1).
| ||||||
6 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
7 | 97-694, eff. 6-18-12.)
| ||||||
8 | (40 ILCS 5/15-198)
| ||||||
9 | Sec. 15-198. Application and expiration of new benefit | ||||||
10 | increases. | ||||||
11 | (a) As used in this Section, "new benefit increase" means | ||||||
12 | an increase in the amount of any benefit provided under this | ||||||
13 | Article, or an expansion of the conditions of eligibility for | ||||||
14 | any benefit under this Article or Article 1 , that results from | ||||||
15 | an amendment to this Code that takes effect after the effective | ||||||
16 | date of this amendatory Act of the 94th General Assembly. "New | ||||||
17 | benefit increase", however, does not include any benefit | ||||||
18 | increase resulting from the changes made to this Article or | ||||||
19 | Article 1 by this amendatory Act of the 98th General Assembly. | ||||||
20 | (b) Notwithstanding any other provision of this Code or any | ||||||
21 | subsequent amendment to this Code, every new benefit increase | ||||||
22 | is subject to this Section and shall be deemed to be granted | ||||||
23 | only in conformance with and contingent upon compliance with | ||||||
24 | the provisions of this Section.
| ||||||
25 | (c) The Public Act enacting a new benefit increase must |
| |||||||
| |||||||
1 | identify and provide for payment to the System of additional | ||||||
2 | funding at least sufficient to fund the resulting annual | ||||||
3 | increase in cost to the System as it accrues. | ||||||
4 | Every new benefit increase is contingent upon the General | ||||||
5 | Assembly providing the additional funding required under this | ||||||
6 | subsection. The Commission on Government Forecasting and | ||||||
7 | Accountability shall analyze whether adequate additional | ||||||
8 | funding has been provided for the new benefit increase and | ||||||
9 | shall report its analysis to the Public Pension Division of the | ||||||
10 | Department of Financial and Professional Regulation. A new | ||||||
11 | benefit increase created by a Public Act that does not include | ||||||
12 | the additional funding required under this subsection is null | ||||||
13 | and void. If the Public Pension Division determines that the | ||||||
14 | additional funding provided for a new benefit increase under | ||||||
15 | this subsection is or has become inadequate, it may so certify | ||||||
16 | to the Governor and the State Comptroller and, in the absence | ||||||
17 | of corrective action by the General Assembly, the new benefit | ||||||
18 | increase shall expire at the end of the fiscal year in which | ||||||
19 | the certification is made.
| ||||||
20 | (d) Every new benefit increase shall expire 5 years after | ||||||
21 | its effective date or on such earlier date as may be specified | ||||||
22 | in the language enacting the new benefit increase or provided | ||||||
23 | under subsection (c). This does not prevent the General | ||||||
24 | Assembly from extending or re-creating a new benefit increase | ||||||
25 | by law. | ||||||
26 | (e) Except as otherwise provided in the language creating |
| |||||||
| |||||||
1 | the new benefit increase, a new benefit increase that expires | ||||||
2 | under this Section continues to apply to persons who applied | ||||||
3 | and qualified for the affected benefit while the new benefit | ||||||
4 | increase was in effect and to the affected beneficiaries and | ||||||
5 | alternate payees of such persons, but does not apply to any | ||||||
6 | other person, including without limitation a person who | ||||||
7 | continues in service after the expiration date and did not | ||||||
8 | apply and qualify for the affected benefit while the new | ||||||
9 | benefit increase was in effect.
| ||||||
10 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
11 | (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
| ||||||
12 | Sec. 16-106. Teacher. "Teacher": The following | ||||||
13 | individuals, provided
that, for employment prior to July 1, | ||||||
14 | 1990, they are employed on a
full-time basis, or if not | ||||||
15 | full-time, on a permanent and continuous basis
in a position in | ||||||
16 | which services are expected to be rendered for at least
one | ||||||
17 | school term:
| ||||||
18 | (1) Any educational, administrative, professional or | ||||||
19 | other staff employed
in the public common schools included | ||||||
20 | within this system in a position
requiring certification | ||||||
21 | under the law governing the certification of
teachers;
| ||||||
22 | (2) Any educational, administrative, professional or | ||||||
23 | other staff employed
in any facility of the Department of | ||||||
24 | Children and Family Services or the
Department of Human | ||||||
25 | Services, in a position requiring certification under
the |
| |||||||
| |||||||
1 | law governing the certification of teachers, and any person | ||||||
2 | who (i)
works in such a position for the Department of | ||||||
3 | Corrections, (ii) was a member
of this System on May 31, | ||||||
4 | 1987, and (iii) did not elect to become a member of
the | ||||||
5 | State Employees' Retirement System pursuant to Section | ||||||
6 | 14-108.2 of this
Code; except that "teacher" does not | ||||||
7 | include any person who (A) becomes
a security employee of | ||||||
8 | the Department of Human Services, as defined in
Section | ||||||
9 | 14-110, after June 28, 2001 (the effective date of Public | ||||||
10 | Act
92-14), or (B) becomes a member of the State Employees'
| ||||||
11 | Retirement System pursuant to Section 14-108.2c of this | ||||||
12 | Code;
| ||||||
13 | (3) Any regional superintendent of schools, assistant | ||||||
14 | regional
superintendent of schools, State Superintendent | ||||||
15 | of Education; any person
employed by the State Board of | ||||||
16 | Education as an executive; any executive of
the boards | ||||||
17 | engaged in the service of public common school education in
| ||||||
18 | school districts covered under this system of which the | ||||||
19 | State
Superintendent of Education is an ex-officio member;
| ||||||
20 | (4) Any employee of a school board association | ||||||
21 | operating in compliance
with Article 23 of the School Code | ||||||
22 | who is certificated under the law
governing the | ||||||
23 | certification of teachers , provided that he or she becomes | ||||||
24 | such an employee before the effective date of this | ||||||
25 | amendatory Act of the 98th General Assembly ;
| ||||||
26 | (5) Any person employed by the retirement system
who:
|
| |||||||
| |||||||
1 | (i) was an employee of and a participant in the | ||||||
2 | system on August 17,
2001 (the effective date of Public | ||||||
3 | Act 92-416), or
| ||||||
4 | (ii) becomes an employee of the system on or after | ||||||
5 | August 17, 2001;
| ||||||
6 | (6) Any educational, administrative, professional or | ||||||
7 | other staff
employed by and under the supervision and | ||||||
8 | control of a regional
superintendent of schools, provided | ||||||
9 | such employment position requires the
person to be | ||||||
10 | certificated under the law governing the certification of
| ||||||
11 | teachers and is in an educational program serving 2 or more | ||||||
12 | districts in
accordance with a joint agreement authorized | ||||||
13 | by the School Code or by federal
legislation;
| ||||||
14 | (7) Any educational, administrative, professional or | ||||||
15 | other staff employed
in an educational program serving 2 or | ||||||
16 | more school districts in accordance
with a joint agreement | ||||||
17 | authorized by the School Code or by federal
legislation and | ||||||
18 | in a position requiring certification under the laws
| ||||||
19 | governing the certification of teachers;
| ||||||
20 | (8) Any officer or employee of a statewide teacher | ||||||
21 | organization or
officer of a national teacher organization | ||||||
22 | who is certified under the law
governing certification of | ||||||
23 | teachers, provided: (i) the individual had
previously | ||||||
24 | established creditable service under this Article, (ii) | ||||||
25 | the
individual files with the system an irrevocable | ||||||
26 | election to become a member before January 5, 2012 ( the |
| |||||||
| |||||||
1 | effective date of Public Act 97-651) this amendatory Act of | ||||||
2 | the 97th General Assembly ,
(iii) the individual does not | ||||||
3 | receive credit for such service under any
other Article of | ||||||
4 | this Code, and (iv) the individual first became an officer | ||||||
5 | or employee of the teacher organization and becomes a | ||||||
6 | member before January 5, 2012 ( the effective date of Public | ||||||
7 | Act 97-651) this amendatory Act of the 97th General | ||||||
8 | Assembly ;
| ||||||
9 | (9) Any educational, administrative, professional, or | ||||||
10 | other staff
employed in a charter school operating in | ||||||
11 | compliance with the Charter
Schools Law who is certificated | ||||||
12 | under the law governing the certification
of teachers ; .
| ||||||
13 | (10) Any person employed, on the effective date of this | ||||||
14 | amendatory Act of the 94th General Assembly, by the | ||||||
15 | Macon-Piatt Regional Office of Education in a | ||||||
16 | birth-through-age-three pilot program receiving funds | ||||||
17 | under Section 2-389 of the School Code who is required by | ||||||
18 | the Macon-Piatt Regional Office of Education to hold a | ||||||
19 | teaching certificate, provided that the Macon-Piatt | ||||||
20 | Regional Office of Education makes an election, within 6 | ||||||
21 | months after the effective date of this amendatory Act of | ||||||
22 | the 94th General Assembly, to have the person participate | ||||||
23 | in the system. Any service established prior to the | ||||||
24 | effective date of this amendatory Act of the 94th General | ||||||
25 | Assembly for service as an employee of the Macon-Piatt | ||||||
26 | Regional Office of Education in a birth-through-age-three |
| |||||||
| |||||||
1 | pilot program receiving funds under Section 2-389 of the | ||||||
2 | School Code shall be considered service as a teacher if | ||||||
3 | employee and employer contributions have been received by | ||||||
4 | the system and the system has not refunded those | ||||||
5 | contributions.
| ||||||
6 | An annuitant receiving a retirement annuity under this | ||||||
7 | Article or under
Article 17 of this Code who is employed by a | ||||||
8 | board of education
or other employer as permitted under Section | ||||||
9 | 16-118
or 16-150.1 is not a "teacher" for purposes of this | ||||||
10 | Article. A person who
has received a single-sum retirement | ||||||
11 | benefit under Section 16-136.4 of this
Article is not a | ||||||
12 | "teacher" for purposes of this Article.
| ||||||
13 | (Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
| ||||||
14 | (40 ILCS 5/16-107.1 new) | ||||||
15 | Sec. 16-107.1. Tier I employee. "Tier I employee": A | ||||||
16 | teacher under this Article who first became a member or | ||||||
17 | participant before January 1, 2011 under any reciprocal | ||||||
18 | retirement system or pension fund established under this Code | ||||||
19 | other than a retirement system or pension fund established | ||||||
20 | under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for | ||||||
21 | the purposes of the election under Section 16-122.9 and the | ||||||
22 | consequences arising from that election, "Tier I employee" does | ||||||
23 | not include a teacher under this Article who would qualify as a | ||||||
24 | Tier I employee but who has made an irrevocable election on or | ||||||
25 | before January 1, 2013 to retire from service pursuant to the |
| |||||||
| |||||||
1 | terms of a collective bargaining agreement in effect on January | ||||||
2 | 1, 2013, excluding any extension, amendment, or renewal of that | ||||||
3 | agreement on or after that date, and has notified the System of | ||||||
4 | that election. | ||||||
5 | (40 ILCS 5/16-107.2 new) | ||||||
6 | Sec. 16-107.2. Tier I retiree. "Tier I retiree": A former | ||||||
7 | Tier I employee who is receiving a retirement annuity. However, | ||||||
8 | for the purposes of the election under Section 16-122.9 and the | ||||||
9 | consequences arising from that election, "Tier I retiree" also | ||||||
10 | includes a teacher under this Article who would qualify as a | ||||||
11 | Tier I employee but who has made an irrevocable election on or | ||||||
12 | before January 1, 2013 to retire from service pursuant to the | ||||||
13 | terms of a collective bargaining agreement in effect on January | ||||||
14 | 1, 2013, excluding any extension, amendment, or renewal of that | ||||||
15 | agreement on or after that date, and has notified the System of | ||||||
16 | that election.
| ||||||
17 | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
| ||||||
18 | Sec. 16-121. Salary. "Salary": The actual compensation | ||||||
19 | received by a teacher during any
school year and recognized by | ||||||
20 | the system in accordance with
rules of the board. For purposes | ||||||
21 | of this Section, "school year" includes
the regular school term | ||||||
22 | plus any additional period for which a teacher is
compensated | ||||||
23 | and such compensation is recognized by the rules of the board. | ||||||
24 | Notwithstanding any other provision of this Section, |
| |||||||
| |||||||
1 | "salary" does not include any future increase in income offered | ||||||
2 | by an employer under this Article pursuant to the requirements | ||||||
3 | of subsection (c) of Section 16-122.9 that is accepted by a | ||||||
4 | Tier I employee, or a Tier I retiree returning to active | ||||||
5 | service, who has made the election under paragraph (2) of | ||||||
6 | subsection (a) or (a-5) of Section 16-122.9.
| ||||||
7 | (Source: P.A. 84-1028.)
| ||||||
8 | (40 ILCS 5/16-121.1 new) | ||||||
9 | Sec. 16-121.1. Future increase in income. "Future increase | ||||||
10 | in income": Any increase in income in any form offered by an | ||||||
11 | employer to a teacher under this Article after June 30, 2014 | ||||||
12 | that would qualify as "salary", as defined in Section 16-121, | ||||||
13 | but for the fact that the employer offered the increase in | ||||||
14 | income to the employee on the condition that it not qualify as | ||||||
15 | compensation and the employee accepted the increase in income | ||||||
16 | subject to that condition. The term "future increase in income" | ||||||
17 | does not include an increase in income in any form that is paid | ||||||
18 | to a Tier I employee under an employment contract or collective | ||||||
19 | bargaining agreement that is in effect on the effective date of | ||||||
20 | this Section but does include an increase in income in any form | ||||||
21 | pursuant to an extension, amendment, or renewal of any such | ||||||
22 | employment contract or collective bargaining agreement on or | ||||||
23 | after the effective date of this amendatory Act of the 98th | ||||||
24 | General Assembly. |
| |||||||
| |||||||
1 | (40 ILCS 5/16-122.9 new) | ||||||
2 | Sec. 16-122.9. Election by Tier I employees. | ||||||
3 | (a) Each Tier I employee shall make an irrevocable election | ||||||
4 | either: | ||||||
5 | (1) to agree to item (i) or (ii) as set forth in this | ||||||
6 | paragraph (1): | ||||||
7 | (i) to have the amount of the automatic annual | ||||||
8 | increases in his or her retirement annuity that are | ||||||
9 | otherwise provided for in this Article calculated, | ||||||
10 | instead, as provided in subsection (a-1) of Section | ||||||
11 | 16-133.1 or subsection (b-1) of Section 16-136.1, | ||||||
12 | whichever is applicable, and to waive his or her | ||||||
13 | eligibility for 2 automatic annual increases in | ||||||
14 | retirement annuity, as provided in subsection (a-2) of | ||||||
15 | Section 16-133.1 or subsection (b-2) of Section | ||||||
16 | 16-136.1, whichever is applicable; or | ||||||
17 | (ii) to waive his or her eligibility for 3 | ||||||
18 | automatic annual increases in retirement annuity, as | ||||||
19 | provided in subsection (a-3) of Section 16-133.1 or | ||||||
20 | subsection (b-3) of Section 16-136.1, whichever is | ||||||
21 | applicable, and to make the contributions set forth in | ||||||
22 | subsection (a-5) of Section 16-152; or | ||||||
23 | (2) to not agree to item (i) or (ii) as set forth in | ||||||
24 | paragraph (1) of this subsection. | ||||||
25 | The election required under this subsection (a) shall be | ||||||
26 | made by each Tier I employee no earlier than February 1, 2014 |
| |||||||
| |||||||
1 | and no later than May 31, 2014, except that: | ||||||
2 | (i) a person who becomes a Tier I employee under this | ||||||
3 | Article on or after February 1, 2014 must make the election | ||||||
4 | under this subsection (a) within 60 days after becoming a | ||||||
5 | Tier I employee; and | ||||||
6 | (ii) a person who returns to active service as a Tier I | ||||||
7 | employee under this Article on or after February 1, 2014 | ||||||
8 | and has not yet made an election under this Section must | ||||||
9 | make the election under this subsection (a) within 60 days | ||||||
10 | after returning to active service as a Tier I employee; and | ||||||
11 | (iii) a person who made the election under subsection | ||||||
12 | (a-5) as a Tier I retiree remains bound by that election | ||||||
13 | and shall not make a later election under this subsection | ||||||
14 | (a). | ||||||
15 | If a Tier I employee fails for any reason to make a | ||||||
16 | required election under this subsection within the time | ||||||
17 | specified, then the employee shall be deemed to have made the | ||||||
18 | election under paragraph (2) of this subsection. | ||||||
19 | (a-5) Each Tier I retiree shall make an irrevocable | ||||||
20 | election either: | ||||||
21 | (1) to agree to the following: | ||||||
22 | (i) to have the amount of the automatic annual | ||||||
23 | increases in his or her retirement annuity calculated | ||||||
24 | without regard to subsection (a-1), (a-2), or (a-3) of | ||||||
25 | Section 16-133.1 or subsection (b-1), (b-2), or (b-3) | ||||||
26 | of Section 16-136.1, whichever is applicable; and |
| |||||||
| |||||||
1 | (ii) to waive his or her eligibility for 2 | ||||||
2 | automatic annual increases in retirement annuity, as | ||||||
3 | provided in subsection (a-4) of Section 16-133.1 or | ||||||
4 | subsection (b-4) of Section 16-136.1, whichever is | ||||||
5 | applicable; or | ||||||
6 | (2) to not agree to items (i) and (ii) as set forth in | ||||||
7 | paragraph (1) of this subsection. | ||||||
8 | The election required under this subsection (a-5) shall be | ||||||
9 | made by each Tier I retiree no earlier than February 1, 2014 | ||||||
10 | and no later than May 31, 2014, except that: | ||||||
11 | (i) a person who becomes a Tier I retiree under this | ||||||
12 | Article on or after February 1, 2014 must make the election | ||||||
13 | under this subsection (a-5) within 60 days after becoming a | ||||||
14 | Tier I retiree; and | ||||||
15 | (ii) a person who made the election under subsection | ||||||
16 | (a) as a Tier I employee remains bound by that election and | ||||||
17 | shall not make a later election under this subsection | ||||||
18 | (a-5). | ||||||
19 | If a Tier I retiree fails for any reason to make a required | ||||||
20 | election under this subsection within the time specified, then | ||||||
21 | the Tier I retiree shall be deemed to have made the election | ||||||
22 | under paragraph (2) of this subsection. | ||||||
23 | (a-10) All elections under subsection (a) that are made or | ||||||
24 | deemed to be made before June 1, 2014 shall take effect on July | ||||||
25 | 1, 2014. Elections that are made or deemed to be made on or | ||||||
26 | after June 1, 2014 shall take effect on the first day of the |
| |||||||
| |||||||
1 | month following the month in which the election is made or | ||||||
2 | deemed to be made. | ||||||
3 | (b) As adequate and legal consideration provided under this | ||||||
4 | amendatory Act of the 98th General Assembly for making an | ||||||
5 | election under paragraph (1) of subsection (a) of this Section, | ||||||
6 | any future increases in income offered by an employer under | ||||||
7 | this Article to a Tier I employee who has made an election | ||||||
8 | under paragraph (1) of subsection (a) of this Section shall be | ||||||
9 | offered expressly and irrevocably as constituting salary under | ||||||
10 | Section 16-121. In addition, a Tier I employee who has made an | ||||||
11 | election under item (i) of paragraph (1) of subsection (a) of | ||||||
12 | this Section shall receive the right to also participate in the | ||||||
13 | optional cash balance plan established under Section 1-162. | ||||||
14 | Finally, a Tier I employee, other than a Tier I retiree | ||||||
15 | returning to active service as a Tier I employee, who has made | ||||||
16 | an election under item (i) of paragraph (1) of subsection (a) | ||||||
17 | of this Section shall receive the right to the early retirement | ||||||
18 | without discount option set forth in Section 16-133.6. | ||||||
19 | As adequate and legal consideration provided under this | ||||||
20 | amendatory Act of the 98th General Assembly for making an | ||||||
21 | election under paragraph (1) of subsection (a-5) of this | ||||||
22 | Section, any future increases in income offered by an employer | ||||||
23 | under this Article to a Tier I retiree who returns to active | ||||||
24 | service after having made an election under paragraph (1) of | ||||||
25 | subsection (a-5) of this Section shall be offered expressly and | ||||||
26 | irrevocably as constituting salary under Section 16-121. |
| |||||||
| |||||||
1 | (c) A Tier I employee who makes the election under | ||||||
2 | paragraph (2) of subsection (a) of this Section shall not be | ||||||
3 | subject to either item (i) or (ii) set forth in paragraph (1) | ||||||
4 | of subsection (a) of this Section. However, any future | ||||||
5 | increases in income offered by an employer under this Article | ||||||
6 | to a Tier I employee who has made the election under paragraph | ||||||
7 | (2) of subsection (a) of this Section shall be offered by the | ||||||
8 | employer expressly and irrevocably as not constituting salary | ||||||
9 | under Section 16-121, and the employee may not accept any | ||||||
10 | future increase in income that is offered in violation of this | ||||||
11 | requirement. In addition, a Tier I employee who has made the | ||||||
12 | election under paragraph (2) of subsection (a) of this Section | ||||||
13 | shall not receive the right to participate in the optional cash | ||||||
14 | balance plan established under Section 1-162. Finally, a Tier I | ||||||
15 | employee who has made the election under paragraph (2) of | ||||||
16 | subsection (a) of this Section shall not receive the right to | ||||||
17 | the early retirement without discount option set forth in | ||||||
18 | Section 16-133.6. | ||||||
19 | A Tier I retiree who makes the election under paragraph (2) | ||||||
20 | of subsection (a-5) of this Section shall not be subject to | ||||||
21 | either item (i) or (ii) set forth in paragraph (1) of | ||||||
22 | subsection (a-5) of this Section. However, any future increases | ||||||
23 | in income offered by an employer under this Article to a Tier I | ||||||
24 | retiree who returns to active service and has made the election | ||||||
25 | under paragraph (2) of subsection (a-5) of this Section shall | ||||||
26 | be offered by the employer expressly and irrevocably as not |
| |||||||
| |||||||
1 | constituting salary under Section 16-121, and the employee may | ||||||
2 | not accept any future increase in income that is offered in | ||||||
3 | violation of this requirement. In addition, a Tier I retiree | ||||||
4 | who returns to active service and has made the election under | ||||||
5 | paragraph (2) of subsection (a) of this Section shall not | ||||||
6 | receive the right to participate in the optional cash balance | ||||||
7 | plan established under Section 1-162. | ||||||
8 | (d) The System shall make a good faith effort to contact | ||||||
9 | each Tier I employee and Tier I retiree subject to this | ||||||
10 | Section. The System shall mail information describing the | ||||||
11 | required election to each Tier I employee and Tier I retiree by | ||||||
12 | United States Postal Service mail to his or her last known | ||||||
13 | address on file with the System. If the Tier I employee or Tier | ||||||
14 | I retiree is not responsive to other means of contact, it is | ||||||
15 | sufficient for the System to publish the details of any | ||||||
16 | required elections on its website or to publish those details | ||||||
17 | in a regularly published newsletter or other existing public | ||||||
18 | forum. | ||||||
19 | Tier I employees and Tier I retirees who are subject to | ||||||
20 | this Section shall be provided with an election packet | ||||||
21 | containing information regarding their options, as well as the | ||||||
22 | forms necessary to make the required election. Upon request, | ||||||
23 | the System shall offer Tier I employees and Tier I retirees an | ||||||
24 | opportunity to receive information from the System before | ||||||
25 | making the required election. The information may consist of | ||||||
26 | video materials, group presentations, individual consultation |
| |||||||
| |||||||
1 | with a member or authorized representative of the System in | ||||||
2 | person or by telephone or other electronic means, or any | ||||||
3 | combination of those methods. The System shall not provide | ||||||
4 | advice or counseling with respect to which election a Tier I | ||||||
5 | employee or Tier I retiree should make or specific to the legal | ||||||
6 | or tax circumstances of or consequences to the Tier I employee | ||||||
7 | or Tier I retiree. | ||||||
8 | The System shall inform Tier I employees and Tier I | ||||||
9 | retirees in the election packet required under this subsection | ||||||
10 | that the Tier I employee or Tier I retiree may also wish to | ||||||
11 | obtain information and counsel relating to the election | ||||||
12 | required under this Section from any other available source, | ||||||
13 | including but not limited to labor organizations and private | ||||||
14 | counsel. | ||||||
15 | In no event shall the System, its staff, or the Board be | ||||||
16 | held liable for any information given to a member, beneficiary, | ||||||
17 | or annuitant regarding the elections under this Section. The | ||||||
18 | System shall coordinate with the Illinois Department of Central | ||||||
19 | Management Services and each other retirement system | ||||||
20 | administering an election in accordance with this amendatory | ||||||
21 | Act of the 98th General Assembly to provide information | ||||||
22 | concerning the impact of the election set forth in this | ||||||
23 | Section. | ||||||
24 | (e) Notwithstanding any other provision of law, an employer | ||||||
25 | under this Article is required to offer any future increases in | ||||||
26 | income expressly and irrevocably as not constituting "salary" |
| |||||||
| |||||||
1 | under Section 16-121 to any Tier I employee, or Tier I retiree | ||||||
2 | returning to active service, who has made an election under | ||||||
3 | paragraph (2) of subsection (a) or (a-5) of Section 16-122.9. A | ||||||
4 | Tier I employee, or Tier I retiree returning to active service, | ||||||
5 | who has made an election under paragraph (2) of subsection (a) | ||||||
6 | or (a-5) of Section 16-122.9 shall not accept any future | ||||||
7 | increase in income that is offered by an employer under this | ||||||
8 | Article in violation of the requirement set forth in this | ||||||
9 | subsection. | ||||||
10 | (f) A member's election under this Section is not a | ||||||
11 | prohibited election under subdivision (j)(1) of Section 1-119 | ||||||
12 | of this Code. | ||||||
13 | (g) An employee who has made the election under item (i) of | ||||||
14 | paragraph (1) of subsection (a) of this Section may elect to | ||||||
15 | participate in the optional cash balance plan under Section | ||||||
16 | 1-162. | ||||||
17 | The election to participate in the optional cash balance | ||||||
18 | plan shall be made in writing, in the manner provided by the | ||||||
19 | applicable retirement system. | ||||||
20 | (h) No provision of this Section shall be interpreted in a | ||||||
21 | way that would cause the System to cease to be a qualified plan | ||||||
22 | under Section 401(a) of the Internal Revenue Code of 1986. | ||||||
23 | (i) If this Section is determined to be unconstitutional or | ||||||
24 | otherwise invalid by a final unappealable decision of an | ||||||
25 | Illinois court or a court of competent jurisdiction as applied | ||||||
26 | to Tier I employees but not as applied to Tier I retirees, then |
| |||||||
| |||||||
1 | this Section and the changes deriving from the election | ||||||
2 | required under this Section shall be null and void as applied | ||||||
3 | to Tier I employees but shall remain in full effect for Tier I | ||||||
4 | retirees. | ||||||
5 | (j) If this Section is determined to be unconstitutional or | ||||||
6 | otherwise invalid by a final unappealable decision of an | ||||||
7 | Illinois court or a court of competent jurisdiction as applied | ||||||
8 | to Tier I retirees but not as applied to Tier I employees, then | ||||||
9 | this Section and the changes deriving from the election | ||||||
10 | required under this Section shall be null and void as applied | ||||||
11 | to Tier I retirees but shall remain in full effect for Tier I | ||||||
12 | employees. | ||||||
13 | (k) If an election created by this amendatory Act in any | ||||||
14 | other Article of this Code or any change deriving from that | ||||||
15 | election is determined to be unconstitutional or otherwise | ||||||
16 | invalid by a final unappealable decision of an Illinois court | ||||||
17 | or a court of competent jurisdiction, the invalidity of that | ||||||
18 | provision shall not in any way affect the validity of this | ||||||
19 | Section or the changes deriving from the election required | ||||||
20 | under this Section.
| ||||||
21 | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| ||||||
22 | Sec. 16-133. Retirement annuity; amount.
| ||||||
23 | (a) The amount of the retirement annuity shall be (i) in | ||||||
24 | the case of a person who first became a teacher under this | ||||||
25 | Article before July 1, 2005, the larger of the
amounts |
| |||||||
| |||||||
1 | determined under paragraphs (A) and (B) below, or (ii) in the | ||||||
2 | case of a person who first becomes a teacher under this Article | ||||||
3 | on or after July 1, 2005, the amount determined under the | ||||||
4 | applicable provisions of paragraph (B):
| ||||||
5 | (A) An amount consisting of the sum of the following:
| ||||||
6 | (1) An amount that can be provided on an | ||||||
7 | actuarially equivalent basis
by the member's | ||||||
8 | accumulated contributions at the time of retirement; | ||||||
9 | and
| ||||||
10 | (2) The sum of (i) the amount that can be provided | ||||||
11 | on an actuarially
equivalent basis by the member's | ||||||
12 | accumulated contributions representing
service prior | ||||||
13 | to July 1, 1947, and (ii) the amount that can be | ||||||
14 | provided on
an actuarially equivalent basis by the | ||||||
15 | amount obtained by multiplying 1.4
times the member's | ||||||
16 | accumulated contributions covering service subsequent | ||||||
17 | to
June 30, 1947; and
| ||||||
18 | (3) If there is prior service, 2 times the amount | ||||||
19 | that would have been
determined under subparagraph (2) | ||||||
20 | of paragraph (A) above on account of
contributions | ||||||
21 | which would have been made during the period of prior | ||||||
22 | service
creditable to the member had the System been in | ||||||
23 | operation and had the
member made contributions at the | ||||||
24 | contribution rate in effect prior to
July 1, 1947.
| ||||||
25 | For the purpose of calculating an annuity under this Rule | ||||||
26 | 2, neither the contribution required under subsection |
| |||||||
| |||||||
1 | (a-1) of Section 16-152 nor the contribution required under | ||||||
2 | subsection (a-5) of that Section shall be considered when | ||||||
3 | determining the participant's accumulated normal | ||||||
4 | contributions under clause (i) or the employer | ||||||
5 | contribution under clause (ii). | ||||||
6 | This paragraph (A) does not apply to a person who first | ||||||
7 | becomes a teacher under this Article on or after July 1, | ||||||
8 | 2005.
| ||||||
9 | (B) An amount consisting of the greater of the | ||||||
10 | following:
| ||||||
11 | (1) For creditable service earned before July 1, | ||||||
12 | 1998 that has not
been augmented under Section | ||||||
13 | 16-129.1: 1.67% of final average salary for
each of the | ||||||
14 | first 10 years of creditable service, 1.90% of final | ||||||
15 | average salary
for each year in excess of 10 but not | ||||||
16 | exceeding 20, 2.10% of final average
salary for each | ||||||
17 | year in excess of 20 but not exceeding 30, and 2.30% of | ||||||
18 | final
average salary for each year in excess of 30; and
| ||||||
19 | For creditable service earned on or after July 1, | ||||||
20 | 1998 by a member who
has at least 24 years of | ||||||
21 | creditable service on July 1, 1998 and who
does not | ||||||
22 | elect to augment service under Section 16-129.1: 2.2% | ||||||
23 | of final
average salary for each year of creditable | ||||||
24 | service earned on or after July 1,
1998 but before the | ||||||
25 | member reaches a total of 30 years of creditable | ||||||
26 | service
and 2.3% of final average salary for each year |
| |||||||
| |||||||
1 | of creditable service earned
on or after July 1, 1998 | ||||||
2 | and after the member reaches a total of 30 years of
| ||||||
3 | creditable service; and
| ||||||
4 | For all other creditable service: 2.2% of final | ||||||
5 | average salary
for each year of creditable service; or
| ||||||
6 | (2) 1.5% of final average salary for each year of
| ||||||
7 | creditable service plus the sum $7.50 for each of the | ||||||
8 | first 20 years of
creditable service.
| ||||||
9 | The amount of the retirement annuity determined under this | ||||||
10 | paragraph (B)
shall be reduced by 1/2 of 1% for each month | ||||||
11 | that the member is less than
age 60 at the time the | ||||||
12 | retirement annuity begins. However, this reduction
shall | ||||||
13 | not apply (i) if the member has at least 35 years of | ||||||
14 | creditable service,
or (ii) if the member retires on | ||||||
15 | account of disability under Section 16-149.2
of this | ||||||
16 | Article with at least 20 years of creditable service, or | ||||||
17 | (iii) if
the member (1) has earned during the period | ||||||
18 | immediately preceding the last
day of service at least one | ||||||
19 | year of contributing creditable service as an
employee of a | ||||||
20 | department as defined in Section 14-103.04, (2) has earned | ||||||
21 | at
least 5 years of contributing creditable service as an | ||||||
22 | employee of a department
as defined in Section 14-103.04, | ||||||
23 | (3) retires on or after January 1, 2001, and
(4) retires | ||||||
24 | having attained an age which, when added to the number of | ||||||
25 | years of
his or her total creditable service, equals at | ||||||
26 | least 85. Portions of years
shall be counted as decimal |
| |||||||
| |||||||
1 | equivalents.
| ||||||
2 | (b) For purposes of this Section, final average salary | ||||||
3 | shall be the
average salary for the highest 4 consecutive years | ||||||
4 | within the last 10 years
of creditable service as determined | ||||||
5 | under rules of the board. The minimum
final average salary | ||||||
6 | shall be considered to be $2,400 per year.
| ||||||
7 | In the determination of final average salary for members | ||||||
8 | other than
elected officials and their appointees when such | ||||||
9 | appointees are allowed by
statute, that part of a member's | ||||||
10 | salary for any year beginning after June
30, 1979 which exceeds | ||||||
11 | the member's annual full-time salary rate with the
same | ||||||
12 | employer for the preceding year by more than 20% shall be | ||||||
13 | excluded.
The exclusion shall not apply in any year in which | ||||||
14 | the member's creditable
earnings are less than 50% of the | ||||||
15 | preceding year's mean salary for downstate
teachers as | ||||||
16 | determined by the survey of school district salaries provided | ||||||
17 | in
Section 2-3.103 of the School Code.
| ||||||
18 | (c) In determining the amount of the retirement annuity | ||||||
19 | under paragraph
(B) of this Section, a fractional year shall be | ||||||
20 | granted proportional credit.
| ||||||
21 | (d) The retirement annuity determined under paragraph (B) | ||||||
22 | of this Section
shall be available only to members who render | ||||||
23 | teaching service after July
1, 1947 for which member | ||||||
24 | contributions are required, and to annuitants who
re-enter | ||||||
25 | under the provisions of Section 16-150.
| ||||||
26 | (e) The maximum retirement annuity provided under |
| |||||||
| |||||||
1 | paragraph (B) of this
Section shall be 75% of final average | ||||||
2 | salary.
| ||||||
3 | (f) A member retiring after the effective date of this | ||||||
4 | amendatory Act
of 1998 shall receive a pension equal to 75% of | ||||||
5 | final average salary if the
member is qualified to receive a | ||||||
6 | retirement annuity equal to at least 74.6%
of final average | ||||||
7 | salary under this Article or as proportional annuities under
| ||||||
8 | Article 20 of this Code.
| ||||||
9 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
10 | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
| ||||||
11 | Sec. 16-133.1. Automatic annual increase in annuity.
| ||||||
12 | (a) Each member with creditable service and retiring on or | ||||||
13 | after August 26,
1969 is entitled to the automatic annual | ||||||
14 | increases in annuity provided under
this Section while | ||||||
15 | receiving a retirement annuity or disability retirement
| ||||||
16 | annuity from the system.
| ||||||
17 | An annuitant shall first be entitled to an initial increase | ||||||
18 | under this
Section on the January 1 next following the first | ||||||
19 | anniversary of retirement,
or January 1 of the year next | ||||||
20 | following attainment of age 61, whichever is
later. At such | ||||||
21 | time, the system shall pay an initial increase determined as
| ||||||
22 | follows:
| ||||||
23 | (1) 1.5% of the originally granted retirement annuity | ||||||
24 | or disability
retirement annuity multiplied by the number | ||||||
25 | of years elapsed, if any, from the date of retirement
until |
| |||||||
| |||||||
1 | January 1, 1972, plus
| ||||||
2 | (2) 2% of the originally granted annuity multiplied by | ||||||
3 | the number of
years elapsed, if any, from the date of | ||||||
4 | retirement or January
1, 1972, whichever is later, until | ||||||
5 | January 1, 1978, plus
| ||||||
6 | (3) 3% of the originally granted annuity multiplied by | ||||||
7 | the number
of years elapsed from the date of retirement or | ||||||
8 | January 1,
1978, whichever is later, until the effective | ||||||
9 | date of the initial
increase.
| ||||||
10 | However, the initial annual increase calculated under this | ||||||
11 | Section for the
recipient of a disability retirement annuity | ||||||
12 | granted under Section 16-149.2
shall be reduced by an amount | ||||||
13 | equal to the total of all increases in that
annuity received | ||||||
14 | under Section 16-149.5 (but not exceeding 100% of the amount
of | ||||||
15 | the initial increase otherwise provided under this Section).
| ||||||
16 | Except as otherwise provided in subsection (a-1), (a-2), | ||||||
17 | (a-3), or (a-4), if applicable, following Following the initial | ||||||
18 | increase, automatic annual increases in annuity shall
be | ||||||
19 | payable on each January 1 thereafter during the lifetime of the | ||||||
20 | annuitant,
determined as a percentage of the originally granted | ||||||
21 | retirement annuity
or disability retirement annuity for | ||||||
22 | increases granted prior to January
1, 1990, and calculated as a | ||||||
23 | percentage of the total amount of annuity,
including previous | ||||||
24 | increases under this Section, for increases granted on
or after | ||||||
25 | January 1, 1990, as follows: 1.5% for periods prior to January | ||||||
26 | 1,
1972, 2% for periods after December 31, 1971 and prior to |
| |||||||
| |||||||
1 | January 1, 1978,
and 3% for periods after December 31, 1977.
| ||||||
2 | (a-1) Notwithstanding any other provision of this Article, | ||||||
3 | for a Tier I employee who made the election under item (i) of | ||||||
4 | paragraph (1) of subsection (a) of Section 16-122.9, the amount | ||||||
5 | of each automatic annual increase in retirement annuity | ||||||
6 | occurring on or after the effective date of that election, | ||||||
7 | other than the initial increase, shall be 3% of the originally | ||||||
8 | granted retirement annuity. | ||||||
9 | (a-2) Notwithstanding any other provision of this Article, | ||||||
10 | for a Tier I employee who made the election under item (i) of | ||||||
11 | paragraph (1) of subsection (a) of Section 16-122.9, once the | ||||||
12 | initial annual increase under this Section has been granted, | ||||||
13 | the next 2 scheduled annual increases shall be skipped, and | ||||||
14 | thereafter all annual increases shall be granted. | ||||||
15 | (a-3) Notwithstanding any other provision of this Article, | ||||||
16 | for a Tier I employee who made the election under item (ii) of | ||||||
17 | paragraph (1) of subsection (a) of Section 16-122.9 once the | ||||||
18 | first annual increase under this Section has been granted, the | ||||||
19 | next 3 scheduled annual increases shall be skipped, and | ||||||
20 | thereafter all annual increases shall be granted. | ||||||
21 | (a-4) Notwithstanding any other provision of this Article, | ||||||
22 | for a Tier I retiree who made the election under paragraph (1) | ||||||
23 | of subsection (a-5) of Section 16-122.9: | ||||||
24 | (1) if the Tier I retiree has not received the initial | ||||||
25 | annual increase under this Section as of the effective date | ||||||
26 | of this amendatory Act of the 98th General Assembly, then |
| |||||||
| |||||||
1 | once the initial annual increase under this Section has | ||||||
2 | been granted, the next scheduled annual increase shall be | ||||||
3 | skipped, the following annual increase shall be granted, | ||||||
4 | the next annual increase shall be skipped, and thereafter | ||||||
5 | all annual increases shall be granted; and | ||||||
6 | (2) if the Tier I retiree has received the initial | ||||||
7 | annual increase under this Section as of the effective date | ||||||
8 | of this amendatory Act of the 98th General Assembly, then | ||||||
9 | the next annual increase after that effective date shall be | ||||||
10 | skipped, the following annual increase shall be granted, | ||||||
11 | the next annual increase shall be skipped, and thereafter | ||||||
12 | all annual increases shall be granted. | ||||||
13 | (b) The automatic annual increases in annuity provided | ||||||
14 | under this Section
shall not be applicable unless a member has | ||||||
15 | made contributions toward such
increases for a period | ||||||
16 | equivalent to one full year of creditable service.
If a member | ||||||
17 | contributes for service performed after August 26, 1969 but
the | ||||||
18 | member becomes an annuitant before such contributions amount to | ||||||
19 | one
full year's contributions based on the salary at the date | ||||||
20 | of retirement,
he or she may pay the necessary balance of the | ||||||
21 | contributions to the system
and be eligible for the automatic | ||||||
22 | annual increases in annuity provided under
this Section.
| ||||||
23 | (c) Each member shall make contributions toward the cost of | ||||||
24 | the automatic
annual increases in annuity as provided under | ||||||
25 | Section 16-152.
| ||||||
26 | (d) An annuitant receiving a retirement annuity or |
| |||||||
| |||||||
1 | disability retirement
annuity on July 1, 1969, who subsequently | ||||||
2 | re-enters service as a teacher
is eligible for the automatic | ||||||
3 | annual increases in annuity provided under
this Section if he | ||||||
4 | or she renders at least one year of creditable service
| ||||||
5 | following the latest re-entry.
| ||||||
6 | (e) In addition to the automatic annual increases in | ||||||
7 | annuity provided
under this Section, an annuitant who meets the | ||||||
8 | service requirements of this
Section and whose retirement | ||||||
9 | annuity or disability retirement annuity began
on or before | ||||||
10 | January 1, 1971 shall receive, on January 1, 1981, an increase
| ||||||
11 | in the annuity then being paid of one dollar per month for each | ||||||
12 | year of
creditable service. On January 1, 1982, an annuitant | ||||||
13 | whose retirement
annuity or disability retirement annuity | ||||||
14 | began on or before January 1, 1977
shall receive an increase in | ||||||
15 | the annuity then being paid of one dollar per
month for each | ||||||
16 | year of creditable service.
| ||||||
17 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
18 | began
on or before January 1, 1977, shall receive an increase | ||||||
19 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
20 | creditable service times the
number of years that have elapsed | ||||||
21 | since the annuity began.
| ||||||
22 | (Source: P.A. 91-927, eff. 12-14-00.)
| ||||||
23 | (40 ILCS 5/16-133.6 new) | ||||||
24 | Sec. 16-133.6. Optional teacher early retirement without | ||||||
25 | discount. A Tier I employee who makes an election under item |
| |||||||
| |||||||
1 | (i) of paragraph (1) of subsection (a) of Section 16-122.9, | ||||||
2 | retires on or after the beginning of the first State fiscal | ||||||
3 | year to occur after the end of the election period specified in | ||||||
4 | Section 16-122.9, and applies for a retirement annuity within 6 | ||||||
5 | months of the last day of teaching for which retirement | ||||||
6 | contributions were required may elect, at the time of | ||||||
7 | application for a retirement annuity, to make a one-time member | ||||||
8 | contribution to the System and, thereby, avoid the reduction in | ||||||
9 | the retirement annuity for retirement before age 60 specified | ||||||
10 | in paragraph (B) of Section 16-133. The exercise of the | ||||||
11 | election shall also obligate the last employer to make a | ||||||
12 | one-time nonrefundable contribution to the System. Substitute | ||||||
13 | teachers wishing to exercise this election must teach 85 or | ||||||
14 | more days in one school term with one employer, who shall be | ||||||
15 | deemed the last employer for purposes of this Section. The last | ||||||
16 | day of teaching with that employer must be within 6 months of | ||||||
17 | the date of application for retirement. All substitute teaching | ||||||
18 | credit applied toward the required 85 days must be earned after | ||||||
19 | June 30, 1990. | ||||||
20 | The one-time member and employer contributions shall be a | ||||||
21 | percentage of the cost of this benefit as determined by the | ||||||
22 | System. However, when determining the one-time member and | ||||||
23 | employer contributions, that part of a member's salary with the | ||||||
24 | same employer which exceeds the annual salary rate for the | ||||||
25 | preceding year by more than 20% shall be excluded. The member | ||||||
26 | contribution shall be at the rate of 50% of the cost of the |
| |||||||
| |||||||
1 | benefits as determined by the System. The employer contribution | ||||||
2 | shall be at the rate of 50% of the cost of the benefits as | ||||||
3 | determined by the System. | ||||||
4 | Upon receipt of the application and election, the System | ||||||
5 | shall determine the one-time employee and employer | ||||||
6 | contributions required. The member contribution shall be | ||||||
7 | credited to the individual account of the member and the | ||||||
8 | employer contribution shall be credited to the Benefit Trust | ||||||
9 | Reserve. The avoidance of the reduction in retirement annuity | ||||||
10 | provided under this Section is not applicable until the | ||||||
11 | member's contribution, if any, has been received by the System; | ||||||
12 | however, the date that contribution is received shall not be | ||||||
13 | considered in determining the effective date of retirement. | ||||||
14 | The number of members working for a single employer who may | ||||||
15 | retire under this Section in any year may be limited at the | ||||||
16 | option of the employer to a specified percentage of those | ||||||
17 | eligible, not less than 10%, with the right to participate to | ||||||
18 | be allocated among those applying on the basis of seniority in | ||||||
19 | the service of the employer.
| ||||||
20 | (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
| ||||||
21 | Sec. 16-136.1. Annual increase for certain annuitants. | ||||||
22 | (a) Any annuitant receiving a retirement annuity on June | ||||||
23 | 30, 1969 and
any member retiring after June 30, 1969 shall be | ||||||
24 | eligible for the annual
increases provided under this Section | ||||||
25 | provided the annuitant is ineligible
for the automatic annual |
| |||||||
| |||||||
1 | increase in annuity provided under Section
16-133.1, and | ||||||
2 | provided further that (1) retirement occurred at age 55 or over
| ||||||
3 | and was based on 5 or more years of creditable service or (2) | ||||||
4 | if
retirement occurred prior to age 55, the retirement annuity
| ||||||
5 | was based on 20 or more years of creditable service.
| ||||||
6 | (b) An annuitant entitled to increases under this Section | ||||||
7 | shall be entitled
to the initial increase as of the later of: | ||||||
8 | (1) January 1 following
attainment of age 65, (2) January 1 | ||||||
9 | following the first anniversary
of retirement, or (3) the first | ||||||
10 | day of the month following receipt of
the required qualifying | ||||||
11 | contribution from the annuitant. The initial monthly
increase | ||||||
12 | shall be computed on the basis of the period elapsed between
| ||||||
13 | the later of the date of last retirement or attainment of age | ||||||
14 | 50 and the
date of qualification for the initial increase, at | ||||||
15 | the rate of 1 1/2% of
the original monthly retirement annuity | ||||||
16 | per year for periods
prior to September 1, 1971, and at the | ||||||
17 | rate of 2% per year for periods between
September 1, 1971 and | ||||||
18 | September 1, 1978, and at the rate of 3% per year
for periods | ||||||
19 | thereafter.
| ||||||
20 | Except as otherwise provided in subsection (b-1), (b-2), | ||||||
21 | (b-3), or (b-4), if applicable, an An annuitant who has | ||||||
22 | received an initial increase under this Section ,
shall be | ||||||
23 | entitled, on each January 1 following the granting of the
| ||||||
24 | initial increase, to an increase of 3% of the original monthly | ||||||
25 | retirement
annuity for increases granted prior to January 1, | ||||||
26 | 1990, and equal to 3%
of the total annuity, including previous |
| |||||||
| |||||||
1 | increases under this Section, for
increases granted on or after | ||||||
2 | January 1, 1990. The original monthly
retirement annuity for | ||||||
3 | computations under this subsection
(b) shall be considered to | ||||||
4 | be $83.34 for any annuitant entitled to benefits
under Section | ||||||
5 | 16-134. The minimum original disability retirement annuity
for | ||||||
6 | computations under this subsection (b) shall be considered to | ||||||
7 | be
$33.34 per month for any annuitant retired on account of | ||||||
8 | disability.
| ||||||
9 | (b-1) Notwithstanding any other provision of this Article, | ||||||
10 | for a Tier I employee who made the election under item (i) of | ||||||
11 | paragraph (1) of subsection (a) of Section 16-122.9, the amount | ||||||
12 | of each automatic annual increase in retirement annuity | ||||||
13 | occurring on or after the effective date of that election, | ||||||
14 | other than the initial increase, shall be 3% of the originally | ||||||
15 | granted retirement annuity. | ||||||
16 | (b-2) Notwithstanding any other provision of this Article, | ||||||
17 | for a Tier I employee who made the election under item (i) of | ||||||
18 | paragraph (1) of subsection (a) of Section 16-122.9, once the | ||||||
19 | initial annual increase under this Section has been granted, | ||||||
20 | the next 2 scheduled annual increases shall be skipped, and | ||||||
21 | thereafter all annual increases shall be granted. | ||||||
22 | (b-3) Notwithstanding any other provision of this Article, | ||||||
23 | for a Tier I employee who made the election under item (ii) of | ||||||
24 | paragraph (1) of subsection (a) of Section 16-122.9, once the | ||||||
25 | first annual increase under this Section has been granted, the | ||||||
26 | next 3 scheduled annual increases shall be skipped, and |
| |||||||
| |||||||
1 | thereafter all annual increases shall be granted. | ||||||
2 | (b-4) Notwithstanding any other provision of this Article, | ||||||
3 | for a Tier I retiree who made the election under paragraph (1) | ||||||
4 | of subsection (a-5) of Section 16-122.9: | ||||||
5 | (1) if the Tier I retiree has not received the initial | ||||||
6 | annual increase under this Section as of the effective date | ||||||
7 | of this amendatory Act of the 98th General Assembly, then | ||||||
8 | once the initial annual increase under this Section has | ||||||
9 | been granted, the next scheduled annual increase shall be | ||||||
10 | skipped, the following annual increase shall be granted, | ||||||
11 | the next annual increase shall be skipped, and thereafter | ||||||
12 | all annual increases shall be granted; and | ||||||
13 | (2) if the Tier I retiree has received the initial | ||||||
14 | annual increase under this Section as of the effective date | ||||||
15 | of this amendatory Act of the 98th General Assembly, then | ||||||
16 | the next annual increase after that effective date shall be | ||||||
17 | skipped, the following annual increase shall be granted, | ||||||
18 | the next annual increase shall be skipped, and thereafter | ||||||
19 | all annual increases shall be granted. | ||||||
20 | (c) An annuitant who otherwise qualifies for annual
| ||||||
21 | increases under this Section must make a one-time payment of
1% | ||||||
22 | of the monthly final average salary for each full year of the | ||||||
23 | creditable
service forming the basis of the retirement annuity | ||||||
24 | or, if the
retirement annuity was not computed using final | ||||||
25 | average salary, 1% of the
original monthly retirement annuity | ||||||
26 | for each full year of service
forming the basis of the |
| |||||||
| |||||||
1 | retirement annuity.
| ||||||
2 | (d) In addition to other increases which may be provided by | ||||||
3 | this Section,
regardless of creditable service, annuitants not | ||||||
4 | meeting
the service requirements of Section 16-133.1 and whose | ||||||
5 | retirement annuity
began on or before January 1, 1971 shall | ||||||
6 | receive, on January
1, 1981, an increase in the retirement | ||||||
7 | annuity then being paid
of one dollar per month for each year | ||||||
8 | of creditable service forming
the basis of the retirement | ||||||
9 | allowance. On January 1, 1982, annuitants
whose retirement | ||||||
10 | annuity began on or before January 1, 1977, shall receive
an | ||||||
11 | increase in the retirement annuity then being paid of one | ||||||
12 | dollar per
month for each year of creditable service.
| ||||||
13 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
14 | began
on or before January 1, 1977, shall receive an increase | ||||||
15 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
16 | creditable service times the
number of years that have elapsed | ||||||
17 | since the annuity began.
| ||||||
18 | (Source: P.A. 86-273.)
| ||||||
19 | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| ||||||
20 | Sec. 16-152. Contributions by members.
| ||||||
21 | (a) Each member shall make contributions for membership | ||||||
22 | service to this
System as follows:
| ||||||
23 | (1) Effective July 1, 1998, contributions of 7.50% of | ||||||
24 | salary towards the
cost of the retirement annuity. Such | ||||||
25 | contributions shall be deemed "normal
contributions".
|
| |||||||
| |||||||
1 | (2) Effective July 1, 1969, contributions of 1/2 of 1% | ||||||
2 | of salary toward
the cost of the automatic annual increase | ||||||
3 | in retirement annuity provided
under Section 16-133.1.
| ||||||
4 | (3) Effective July 24, 1959, contributions of 1% of | ||||||
5 | salary towards the
cost of survivor benefits. Such | ||||||
6 | contributions shall not be credited to
the individual | ||||||
7 | account of the member and shall not be subject to refund
| ||||||
8 | except as provided under Section 16-143.2.
| ||||||
9 | (4) Effective July 1, 2005, contributions of 0.40% of | ||||||
10 | salary toward the cost of the early retirement without | ||||||
11 | discount option provided under Section 16-133.2. This | ||||||
12 | contribution shall cease upon termination of the early | ||||||
13 | retirement without discount option as provided in Section | ||||||
14 | 16-176.
| ||||||
15 | (a-1) In addition to the contributions required under | ||||||
16 | subsection (a), a member who elects to participate in the | ||||||
17 | optional cash balance plan under Section 1-162 shall pay to the | ||||||
18 | System for the purpose of participating in the optional cash | ||||||
19 | balance plan a contribution of 2% of each payment of | ||||||
20 | compensation received while he or she is a participant in the | ||||||
21 | optional cash balance plan. These contributions shall not be | ||||||
22 | used for the purpose of determining any benefit under this | ||||||
23 | Article except as provided in the optional cash balance plan. | ||||||
24 | (a-5) In addition to the contributions otherwise required | ||||||
25 | under this Article, each Tier I member who made the election | ||||||
26 | under item (ii) of paragraph (1) of subsection (a) of Section |
| |||||||
| |||||||
1 | 16-122.9 shall also make the following contributions toward the | ||||||
2 | cost of the retirement annuity from each payment
of salary: | ||||||
3 | (1) beginning July 1, 2014 and through June 30, 2015, | ||||||
4 | 1% of salary; and | ||||||
5 | (2) beginning on July 1, 2015, 2% of salary. | ||||||
6 | Except as otherwise specified, these contributions are to | ||||||
7 | be considered as normal contributions for purposes
of this | ||||||
8 | Article. | ||||||
9 | (b) The minimum required contribution for any year of | ||||||
10 | full-time
teaching service shall be $192.
| ||||||
11 | (c) Contributions shall not be required of any annuitant | ||||||
12 | receiving
a retirement annuity who is given employment as | ||||||
13 | permitted under Section 16-118 or 16-150.1.
| ||||||
14 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
15 | retires with
more than 34 years of creditable service, and | ||||||
16 | (iii) does not elect to qualify
for the augmented rate under | ||||||
17 | Section 16-129.1 shall be entitled, at the time
of retirement, | ||||||
18 | to receive a partial refund of contributions made under this
| ||||||
19 | Section for service occurring after the later of June 30, 1998 | ||||||
20 | or attainment
of 34 years of creditable service, in an amount | ||||||
21 | equal to 1.00% of the salary
upon which those contributions | ||||||
22 | were based.
| ||||||
23 | (e) A member's contributions toward the cost of early | ||||||
24 | retirement without discount made under item (a)(4) of this | ||||||
25 | Section shall not be refunded if the member has elected early | ||||||
26 | retirement without discount under Section 16-133.2 and has |
| |||||||
| |||||||
1 | begun to receive a retirement annuity under this Article | ||||||
2 | calculated in accordance with that election. Otherwise, a | ||||||
3 | member's contributions toward the cost of early retirement | ||||||
4 | without discount made under item (a)(4) of this Section shall | ||||||
5 | be refunded according to whichever one of the following | ||||||
6 | circumstances occurs first: | ||||||
7 | (1) The contributions shall be refunded to the member, | ||||||
8 | without interest, within 120 days after the member's | ||||||
9 | retirement annuity commences, if the member does not elect | ||||||
10 | early retirement without discount under Section 16-133.2. | ||||||
11 | (2) The contributions shall be included, without | ||||||
12 | interest, in any refund claimed by the member under Section | ||||||
13 | 16-151. | ||||||
14 | (3) The contributions shall be refunded to the member's | ||||||
15 | designated beneficiary (or if there is no beneficiary, to | ||||||
16 | the member's estate), without interest, if the member dies | ||||||
17 | without having begun to receive a retirement annuity under | ||||||
18 | this Article. | ||||||
19 | (4) The contributions shall be refunded to the member, | ||||||
20 | without interest, within 120 days after the early | ||||||
21 | retirement without discount option provided under Section | ||||||
22 | 16-133.2 is terminated under Section 16-176.
| ||||||
23 | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| ||||||
24 | (40 ILCS 5/16-158.2 new) | ||||||
25 | Sec. 16-158.2. Obligations of State; funding guarantee. |
| |||||||
| |||||||
1 | The State shall be contractually obligated to contribute to the | ||||||
2 | System in each State fiscal year an amount not less than the | ||||||
3 | sum required in Section 16-158 as that Section existed prior to | ||||||
4 | the effective date of this amendatory Act of the 98th General | ||||||
5 | Assembly. | ||||||
6 | The obligations created under this Section are contractual | ||||||
7 | obligations protected and enforceable under Article I, Section | ||||||
8 | 16 and Article XIII, Section 5 of the Illinois Constitution. | ||||||
9 | Notwithstanding any other provision of law, if the State | ||||||
10 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
11 | this Section, the System may bring a mandamus action in the | ||||||
12 | Circuit Court of Sangamon County to compel the State to make | ||||||
13 | that payment, irrespective of other remedies that
may be | ||||||
14 | available to the System. It shall be the mandatory fiduciary | ||||||
15 | obligation of the Board of the System to bring that action if | ||||||
16 | the State fails to pay in the fiscal year the amount guaranteed | ||||||
17 | under this Section. Before commencing that action, the Board | ||||||
18 | shall submit a voucher for contributions required under Section | ||||||
19 | 16-158. If the State fails to pay a vouchered amount within 90 | ||||||
20 | days after receiving a voucher for that amount, then the Board | ||||||
21 | shall submit a written request to the Comptroller seeking | ||||||
22 | payment of that amount. A copy of the request shall be filed | ||||||
23 | with the Secretary of State, and the Secretary of State shall | ||||||
24 | provide copies of the request to the Governor and General | ||||||
25 | Assembly. No earlier than the 16th day after filing a request | ||||||
26 | with the Secretary, but no later than the 21st day after filing |
| |||||||
| |||||||
1 | that request, the Board may commence such an action in the | ||||||
2 | Circuit Court. If the Board fails to commence such action on or | ||||||
3 | before the 21st day after filing the request with the Secretary | ||||||
4 | of State, then any Tier I employee or Tier I retiree who has | ||||||
5 | made the election under paragraph (1) of subsection (a) or | ||||||
6 | (a-5) of Section 16-122.9 may file a mandamus action against | ||||||
7 | the Board to compel the Board to commence its mandamus action | ||||||
8 | against the State. This Section constitutes an express waiver | ||||||
9 | of the State's sovereign immunity. In ordering the State to | ||||||
10 | make the required payment, the court may order a reasonable | ||||||
11 | payment schedule to enable the State to make the required | ||||||
12 | payment. The obligations and causes of action created under | ||||||
13 | this subsection (b) shall be in addition to any other right or | ||||||
14 | remedy otherwise accorded by common law, or State or federal | ||||||
15 | law, and nothing in this subsection (b) shall be construed to | ||||||
16 | deny, abrogate, impair, or waive any such common law or | ||||||
17 | statutory right or remedy. | ||||||
18 | Any payments required to be made by the State pursuant to | ||||||
19 | this Section are expressly subordinated to the payment of the | ||||||
20 | principal, interest, and premium, if any, on any
bonded debt | ||||||
21 | obligation of the State or any other State-created entity, | ||||||
22 | either currently outstanding or to
be issued, for which the | ||||||
23 | source of repayment or security thereon is derived directly or | ||||||
24 | indirectly from
tax revenues collected by the State or any | ||||||
25 | other State-created entity. Payments on such bonded
| ||||||
26 | obligations include any statutory fund transfers or other |
| |||||||
| |||||||
1 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
2 | in State law or bond indentures, into debt service funds or | ||||||
3 | accounts of the State
related to such bonded obligations, | ||||||
4 | consistent with the payment schedules associated with such
| ||||||
5 | obligations. | ||||||
6 | (40 ILCS 5/16-203)
| ||||||
7 | Sec. 16-203. Application and expiration of new benefit | ||||||
8 | increases. | ||||||
9 | (a) As used in this Section, "new benefit increase" means | ||||||
10 | an increase in the amount of any benefit provided under this | ||||||
11 | Article, or an expansion of the conditions of eligibility for | ||||||
12 | any benefit under this Article, that results from an amendment | ||||||
13 | to this Code that takes effect after June 1, 2005 (the | ||||||
14 | effective date of Public Act 94-4). "New benefit increase", | ||||||
15 | however, does not include any benefit increase resulting from | ||||||
16 | the changes made to this Article by Public Act 95-910 or this | ||||||
17 | amendatory Act of the 98th 95th General Assembly. | ||||||
18 | (b) Notwithstanding any other provision of this Code or any | ||||||
19 | subsequent amendment to this Code, every new benefit increase | ||||||
20 | is subject to this Section and shall be deemed to be granted | ||||||
21 | only in conformance with and contingent upon compliance with | ||||||
22 | the provisions of this Section.
| ||||||
23 | (c) The Public Act enacting a new benefit increase must | ||||||
24 | identify and provide for payment to the System of additional | ||||||
25 | funding at least sufficient to fund the resulting annual |
| |||||||
| |||||||
1 | increase in cost to the System as it accrues. | ||||||
2 | Every new benefit increase is contingent upon the General | ||||||
3 | Assembly providing the additional funding required under this | ||||||
4 | subsection. The Commission on Government Forecasting and | ||||||
5 | Accountability shall analyze whether adequate additional | ||||||
6 | funding has been provided for the new benefit increase and | ||||||
7 | shall report its analysis to the Public Pension Division of the | ||||||
8 | Department of Financial and Professional Regulation. A new | ||||||
9 | benefit increase created by a Public Act that does not include | ||||||
10 | the additional funding required under this subsection is null | ||||||
11 | and void. If the Public Pension Division determines that the | ||||||
12 | additional funding provided for a new benefit increase under | ||||||
13 | this subsection is or has become inadequate, it may so certify | ||||||
14 | to the Governor and the State Comptroller and, in the absence | ||||||
15 | of corrective action by the General Assembly, the new benefit | ||||||
16 | increase shall expire at the end of the fiscal year in which | ||||||
17 | the certification is made.
| ||||||
18 | (d) Every new benefit increase shall expire 5 years after | ||||||
19 | its effective date or on such earlier date as may be specified | ||||||
20 | in the language enacting the new benefit increase or provided | ||||||
21 | under subsection (c). This does not prevent the General | ||||||
22 | Assembly from extending or re-creating a new benefit increase | ||||||
23 | by law. | ||||||
24 | (e) Except as otherwise provided in the language creating | ||||||
25 | the new benefit increase, a new benefit increase that expires | ||||||
26 | under this Section continues to apply to persons who applied |
| |||||||
| |||||||
1 | and qualified for the affected benefit while the new benefit | ||||||
2 | increase was in effect and to the affected beneficiaries and | ||||||
3 | alternate payees of such persons, but does not apply to any | ||||||
4 | other person, including without limitation a person who | ||||||
5 | continues in service after the expiration date and did not | ||||||
6 | apply and qualify for the affected benefit while the new | ||||||
7 | benefit increase was in effect.
| ||||||
8 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
| ||||||
9 | Section 35. The School Code is amended by changing Sections | ||||||
10 | 24-1 and 24-8 as follows:
| ||||||
11 | (105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
| ||||||
12 | Sec. 24-1.
Appointment-Salaries-Payment-School | ||||||
13 | month-School term.)
School boards shall appoint all teachers, | ||||||
14 | determine qualifications of
employment
and fix the amount of | ||||||
15 | their
salaries subject to any limitation set forth in this Act | ||||||
16 | and subject to any applicable restrictions in Section 14-106.5, | ||||||
17 | 15-132.9, or 16-122.9 of the Illinois Pension Code . They shall | ||||||
18 | pay
the wages of teachers monthly, subject, however, to the | ||||||
19 | provisions of
Section 24-21. The school month shall be the same | ||||||
20 | as the calendar month
but by resolution the school board may | ||||||
21 | adopt for its use a month of 20
days, including holidays. The | ||||||
22 | school term shall consist of at least the
minimum number of | ||||||
23 | pupil attendance days required by Section 10-19, any
additional | ||||||
24 | legal school holidays, days of teachers' institutes, or
|
| |||||||
| |||||||
1 | equivalent professional educational experiences, and one or | ||||||
2 | two days at
the beginning of the school term when used as a | ||||||
3 | teachers' workshop.
| ||||||
4 | (Source: P.A. 80-249.)
| ||||||
5 | (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
| ||||||
6 | Sec. 24-8. Minimum salary. In fixing the salaries of | ||||||
7 | teachers, school boards shall pay those who
serve on a | ||||||
8 | full-time basis not less than a rate for the school year that
| ||||||
9 | is based upon training completed in a recognized institution of | ||||||
10 | higher
learning, as follows: for the school year beginning July | ||||||
11 | 1, 1980 and
thereafter, less than a bachelor's degree, $9,000; | ||||||
12 | 120 semester hours or
more and a bachelor's degree, $10,000; | ||||||
13 | 150 semester hours or more and a
master's degree, $11,000.
| ||||||
14 | Based upon previous public school
experience in this State | ||||||
15 | or any other State, territory, dependency or
possession of the | ||||||
16 | United States, or in schools operated by or under the
auspices | ||||||
17 | of the United States, teachers who serve on a full-time basis
| ||||||
18 | shall have their salaries increased to at least the following | ||||||
19 | amounts
above the starting salary for a teacher in such | ||||||
20 | district in the same
classification: with less than a | ||||||
21 | bachelor's degree, $750 after 5 years;
with 120 semester hours | ||||||
22 | or more and a bachelor's degree, $1,000 after 5
years and | ||||||
23 | $1,600 after 8 years; with 150 semester hours or more and a | ||||||
24 | master's
degree, $1,250 after 5 years, $2,000 after 8 years and | ||||||
25 | $2,750 after 13 years. However, any salary increase is subject |
| |||||||
| |||||||
1 | to any applicable restrictions in Section 14-106.5, 15-132.9, | ||||||
2 | or 16-122.9 of the Illinois Pension Code.
| ||||||
3 | For the purpose of this Section a teacher's salary shall | ||||||
4 | include any amount
paid by the school district on behalf of the | ||||||
5 | teacher, as teacher contributions,
to the Teachers' Retirement | ||||||
6 | System of the State of Illinois.
| ||||||
7 | If a school board establishes a schedule for teachers' | ||||||
8 | salaries based
on education and experience, not inconsistent | ||||||
9 | with this Section, all certificated
nurses employed by that | ||||||
10 | board shall be paid in accordance with the provisions
of such | ||||||
11 | schedule (subject to any applicable restrictions in Section | ||||||
12 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code) .
| ||||||
13 | For purposes of this Section, a teacher who submits a | ||||||
14 | certificate of
completion to the school office prior to the | ||||||
15 | first day of the school
term shall be considered to have the | ||||||
16 | degree stated in such certificate.
| ||||||
17 | (Source: P.A. 83-913.)
| ||||||
18 | Section 40. The State Universities Civil Service Act is | ||||||
19 | amended by changing Section 36d as follows:
| ||||||
20 | (110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
| ||||||
21 | Sec. 36d. Powers and duties of the Merit Board.
| ||||||
22 | The Merit Board shall have the power and duty-
| ||||||
23 | (1) To approve a classification plan prepared under its | ||||||
24 | direction,
assigning to each class positions of substantially |
| |||||||
| |||||||
1 | similar duties. The
Merit Board shall have power to delegate to | ||||||
2 | its Director the duty of
assigning each position in the | ||||||
3 | classified service to the appropriate
class in the | ||||||
4 | classification plan approved by the Merit Board.
| ||||||
5 | (2) To prescribe the duties of each class of positions and | ||||||
6 | the
qualifications required by employment in that class.
| ||||||
7 | (3) To prescribe the range of compensation for each class | ||||||
8 | or to fix
a single rate of compensation for employees in a | ||||||
9 | particular class; and
to establish other conditions of | ||||||
10 | employment which an employer and
employee representatives have | ||||||
11 | agreed upon as fair and equitable. The
Merit Board shall direct | ||||||
12 | the payment of the "prevailing rate of wages"
in those | ||||||
13 | classifications in which, on January 1, 1952, any employer is
| ||||||
14 | paying such prevailing rate and in such other classes as the | ||||||
15 | Merit Board
may thereafter determine. "Prevailing rate of | ||||||
16 | wages" as used herein
shall be the wages paid generally in the | ||||||
17 | locality in which the work is
being performed to employees | ||||||
18 | engaged in work of a similar character. Subject to any | ||||||
19 | applicable restrictions in Section 14-106.5, 15-132.9, or | ||||||
20 | 16-122.9 of the Illinois Pension Code, each
Each employer | ||||||
21 | covered by the University System shall be authorized to
| ||||||
22 | negotiate with representatives of employees to determine | ||||||
23 | appropriate
ranges or rates of compensation or other conditions | ||||||
24 | of employment and
may recommend to the Merit Board for | ||||||
25 | establishment the rates or ranges
or other conditions of | ||||||
26 | employment which the employer and employee
representatives |
| |||||||
| |||||||
1 | have agreed upon as fair and equitable , but excluding the | ||||||
2 | changes, the impact of changes, and the implementation of the | ||||||
3 | changes set forth in this amendatory Act of the 98th General | ||||||
4 | Assembly . Any rates or
ranges established prior to January 1, | ||||||
5 | 1952, and hereafter, shall not be
changed except in accordance | ||||||
6 | with the procedures herein provided.
| ||||||
7 | (4) To recommend to the institutions and agencies specified | ||||||
8 | in
Section 36e standards for hours of work, holidays, sick | ||||||
9 | leave, overtime
compensation and vacation for the purpose of | ||||||
10 | improving conditions of
employment covered therein and for the | ||||||
11 | purpose of insuring conformity
with the prevailing rate | ||||||
12 | principal.
| ||||||
13 | (5) To prescribe standards of examination for each class, | ||||||
14 | the
examinations to be related to the duties of such class. The | ||||||
15 | Merit Board
shall have power to delegate to the Director and | ||||||
16 | his staff the
preparation, conduct and grading of examinations. | ||||||
17 | Examinations may be
written, oral, by statement of training and | ||||||
18 | experience, in the form of
tests of knowledge, skill, capacity, | ||||||
19 | intellect, aptitude; or, by any
other method, which in the | ||||||
20 | judgment of the Merit Board is reasonable and
practical for any | ||||||
21 | particular classification. Different examining
procedures may | ||||||
22 | be determined for the examinations in different
| ||||||
23 | classifications but all examinations in the same | ||||||
24 | classification shall be
uniform.
| ||||||
25 | (6) To authorize the continuous recruitment of personnel | ||||||
26 | and to that
end, to delegate to the Director and his staff the |
| |||||||
| |||||||
1 | power and the duty to
conduct open and continuous competitive | ||||||
2 | examinations for all
classifications of employment.
| ||||||
3 | (7) To cause to be established from the results of | ||||||
4 | examinations
registers for each class of positions in the | ||||||
5 | classified service of the
State Universities Civil Service | ||||||
6 | System, of the persons who shall
attain the minimum mark fixed | ||||||
7 | by the Merit Board for the examination;
and such persons shall | ||||||
8 | take rank upon the registers as candidates in the
order of | ||||||
9 | their relative excellence as determined by examination, | ||||||
10 | without
reference to priority of time of examination.
| ||||||
11 | (8) To provide by its rules for promotions in the | ||||||
12 | classified
service. Vacancies shall be filled by promotion | ||||||
13 | whenever practicable.
For the purpose of this paragraph, an | ||||||
14 | advancement in class shall
constitute a promotion.
| ||||||
15 | (9) To set a probationary period of employment of no less | ||||||
16 | than 6 months
and no longer than 12 months for each class of | ||||||
17 | positions in the classification
plan, the length of the | ||||||
18 | probationary period for each class to be determined
by the | ||||||
19 | Director.
| ||||||
20 | (10) To provide by its rules for employment at regular | ||||||
21 | rates of
compensation of physically handicapped persons in | ||||||
22 | positions in which the
handicap does not prevent the individual | ||||||
23 | from furnishing satisfactory
service.
| ||||||
24 | (11) To make and publish rules, to carry out the purpose of | ||||||
25 | the
State Universities Civil Service System and for | ||||||
26 | examination, appointments,
transfers and removals and for |
| |||||||
| |||||||
1 | maintaining and keeping records of the
efficiency of officers | ||||||
2 | and employees and groups of officers and
employees in | ||||||
3 | accordance with the provisions of Sections 36b to 36q,
| ||||||
4 | inclusive, and said Merit Board may from time to time make | ||||||
5 | changes in
such rules.
| ||||||
6 | (12) To appoint a Director and such assistants and other | ||||||
7 | clerical
and technical help as may be necessary efficiently to | ||||||
8 | administer
Sections 36b to 36q, inclusive. To authorize the | ||||||
9 | Director to appoint an
assistant resident at the place of | ||||||
10 | employment of each employer specified
in Section 36e and this | ||||||
11 | assistant may be authorized to give examinations
and to certify | ||||||
12 | names from the regional registers provided in Section
36k.
| ||||||
13 | (13) To submit to the Governor of this state on or before | ||||||
14 | November 1
of each year prior to the regular session of the | ||||||
15 | General Assembly a
report of the University System's business | ||||||
16 | and an estimate of the amount
of appropriation from state funds | ||||||
17 | required for the purpose of
administering the University | ||||||
18 | System.
| ||||||
19 | (Source: P.A. 82-524.)
| ||||||
20 | Section 45. The University of Illinois Act is amended by | ||||||
21 | adding Section 85 as follows: | ||||||
22 | (110 ILCS 305/85 new) | ||||||
23 | Sec. 85. Future increases in income. The University of | ||||||
24 | Illinois must not pay, offer, or agree to pay any future |
| |||||||
| |||||||
1 | increase in income, as that term is defined in Section | ||||||
2 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
3 | to any person in a manner that violates any of those Sections. | ||||||
4 | Section 50. The Southern Illinois University Management | ||||||
5 | Act is amended by adding Section 70 as follows: | ||||||
6 | (110 ILCS 520/70 new) | ||||||
7 | Sec. 70. Future increases in income. Southern Illinois | ||||||
8 | University must not pay, offer, or agree to pay any future | ||||||
9 | increase in income, as that term is defined in Section | ||||||
10 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
11 | to any person in a manner that violates any of those Sections. | ||||||
12 | Section 55. The Chicago State University Law is amended by | ||||||
13 | adding Section 5-180 as follows: | ||||||
14 | (110 ILCS 660/5-180 new) | ||||||
15 | Sec. 5-180. Future increases in income. Chicago State | ||||||
16 | University must not pay, offer, or agree to pay any future | ||||||
17 | increase in income, as that term is defined in Section | ||||||
18 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
19 | to any person in a manner that violates any of those Sections. | ||||||
20 | Section 60. The Eastern Illinois University Law is amended | ||||||
21 | by adding Section 10-180 as follows: |
| |||||||
| |||||||
1 | (110 ILCS 665/10-180 new) | ||||||
2 | Sec. 10-180. Future increases in income. Eastern Illinois | ||||||
3 | University must not pay, offer, or agree to pay any future | ||||||
4 | increase in income, as that term is defined in Section | ||||||
5 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
6 | to any person in a manner that violates any of those Sections. | ||||||
7 | Section 65. The Governors State University Law is amended | ||||||
8 | by adding Section 15-180 as follows: | ||||||
9 | (110 ILCS 670/15-180 new) | ||||||
10 | Sec. 15-180. Future increases in income. Governors State | ||||||
11 | University must not pay, offer, or agree to pay any future | ||||||
12 | increase in income, as that term is defined in Section | ||||||
13 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
14 | to any person in a manner that violates any of those Sections. | ||||||
15 | Section 70. The Illinois State University Law is amended by | ||||||
16 | adding Section 20-185 as follows: | ||||||
17 | (110 ILCS 675/20-185 new) | ||||||
18 | Sec. 20-185. Future increases in income. Illinois State | ||||||
19 | University must not pay, offer, or agree to pay any future | ||||||
20 | increase in income, as that term is defined in Section | ||||||
21 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, |
| |||||||
| |||||||
1 | to any person in a manner that violates any of those Sections. | ||||||
2 | Section 75. The Northeastern Illinois University Law is | ||||||
3 | amended by adding Section 25-180 as follows: | ||||||
4 | (110 ILCS 680/25-180 new) | ||||||
5 | Sec. 25-180. Future increases in income. Northeastern | ||||||
6 | Illinois University must not pay, offer, or agree to pay any | ||||||
7 | future increase in income, as that term is defined in Section | ||||||
8 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
9 | to any person in a manner that violates any of those Sections. | ||||||
10 | Section 80. The Northern Illinois University Law is amended | ||||||
11 | by adding Section 30-190 as follows: | ||||||
12 | (110 ILCS 685/30-190 new) | ||||||
13 | Sec. 30-190. Future increases in income. Northern Illinois | ||||||
14 | University must not pay, offer, or agree to pay any future | ||||||
15 | increase in income, as that term is defined in Section | ||||||
16 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
17 | to any person in a manner that violates any of those Sections. | ||||||
18 | Section 85. The Western Illinois University Law is amended | ||||||
19 | by adding Section 35-185 as follows: | ||||||
20 | (110 ILCS 690/35-185 new) |
| |||||||
| |||||||
1 | Sec. 35-185. Future increases in income. Western Illinois | ||||||
2 | University must not pay, offer, or agree to pay any future | ||||||
3 | increase in income, as that term is defined in Section | ||||||
4 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code, | ||||||
5 | to any person in a manner that violates any of those Sections. | ||||||
6 | Section 90. The Public Community College Act is amended by | ||||||
7 | changing Sections 3-26 and 3-42 as follows:
| ||||||
8 | (110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
| ||||||
9 | Sec. 3-26.
(a) To make appointments and fix the salaries of | ||||||
10 | a
chief administrative officer, who shall be the executive
| ||||||
11 | officer of the board, other administrative personnel , and all | ||||||
12 | teachers , but subject to any applicable restrictions in Section | ||||||
13 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code .
| ||||||
14 | In making these appointments and fixing the salaries, the board | ||||||
15 | may
make no discrimination on account of sex, race, creed, | ||||||
16 | color or national origin.
| ||||||
17 | (b) Upon the written request of an employee, to
withhold | ||||||
18 | from the compensation of that employee the membership
dues of | ||||||
19 | such employee
payable to any specified labor organization
as | ||||||
20 | defined in the Illinois Educational Labor Relations Act. Under | ||||||
21 | such
arrangement, an amount shall be withheld for each regular | ||||||
22 | payroll period
which is equal to the prorata share of the | ||||||
23 | annual membership dues plus
any payments or contributions and | ||||||
24 | the
board shall pay such withholding to the specified labor |
| |||||||
| |||||||
1 | organization
within 10 working days from the time of the | ||||||
2 | withholding.
| ||||||
3 | (Source: P.A. 83-1014.)
| ||||||
4 | (110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
| ||||||
5 | Sec. 3-42.
To employ such personnel as may be needed, to | ||||||
6 | establish policies
governing their employment and dismissal, | ||||||
7 | and to fix the amount of their
compensation , subject to any | ||||||
8 | applicable restrictions in Section 14-106.5, 15-132.9, or | ||||||
9 | 16-122.9 of the Illinois Pension Code . In the employment, | ||||||
10 | establishment of policies and fixing of
compensation the board | ||||||
11 | may make no discrimination on account of sex, race,
creed, | ||||||
12 | color or national origin.
| ||||||
13 | Residence within any community college district or outside | ||||||
14 | any community
college district shall not be considered:
| ||||||
15 | (a) in determining whether to retain or not retain any | ||||||
16 | employee of a community
college employed prior to July 1, | ||||||
17 | 1977 or prior to the adoption by the community
college | ||||||
18 | board of a resolution making residency within the community | ||||||
19 | college
district of some or all employees a condition of | ||||||
20 | employment, whichever is later;
| ||||||
21 | (b) in assigning, promoting or transferring any | ||||||
22 | employee of a community
college to an office or position | ||||||
23 | employed prior to July 1, 1977 or prior
to the adoption by | ||||||
24 | the community college board of a resolution making | ||||||
25 | residency
within the community college district of some or |
| |||||||
| |||||||
1 | all employees a condition
of employment, whichever is | ||||||
2 | later; or
| ||||||
3 | (c) in determining the salary or other compensation of | ||||||
4 | any employee of
a community college.
| ||||||
5 | (Source: P.A. 80-248.)
| ||||||
6 | Section 95. The Illinois Educational Labor Relations Act is | ||||||
7 | amended by changing Section 4 as follows:
| ||||||
8 | (115 ILCS 5/4) (from Ch. 48, par. 1704)
| ||||||
9 | Sec. 4. Employer rights. Employers shall not be required to | ||||||
10 | bargain over matters of inherent
managerial policy, which shall | ||||||
11 | include such areas of discretion or policy
as the functions of | ||||||
12 | the employer, standards of services, its overall
budget, the | ||||||
13 | organizational structure and selection of new employees and
| ||||||
14 | direction of employees. Employers, however, shall be required | ||||||
15 | to bargain
collectively with regard to policy matters directly | ||||||
16 | affecting wages, hours
and terms and conditions of employment | ||||||
17 | as well as the impact thereon upon
request by employee | ||||||
18 | representatives , but excluding (i) the payment of the | ||||||
19 | additional member contributions set forth in subsections (a-1) | ||||||
20 | and (a-5) of Sections 14-133, 15-157, and 16-152 of the | ||||||
21 | Illinois Pension Code and (ii) the provision of compensation or | ||||||
22 | benefits to employees who make an election under Section | ||||||
23 | 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code in | ||||||
24 | order to offset all or part of any compensation or benefit |
| |||||||
| |||||||
1 | limitations included as part of the elections under those | ||||||
2 | Sections . To preserve the rights of employers
and exclusive | ||||||
3 | representatives which have established collective bargaining
| ||||||
4 | relationships or negotiated collective bargaining agreements | ||||||
5 | prior to the
effective date of this Act, employers shall be | ||||||
6 | required to bargain
collectively with regard to any matter | ||||||
7 | concerning wages, hours or
conditions of employment about which | ||||||
8 | they have bargained for and agreed to
in a collective | ||||||
9 | bargaining agreement prior to the effective date of this Act , | ||||||
10 | but excluding (i) the payment of the additional member | ||||||
11 | contributions set forth in subsections (a-1) and (a-5) of | ||||||
12 | Sections 14-133, 15-157, and 16-152 of the Illinois Pension | ||||||
13 | Code and (ii) the provision of compensation or benefits to | ||||||
14 | employees who make an election under Section 14-106.5, | ||||||
15 | 15-132.9, or 16-122.9 of the Illinois Pension Code in order to | ||||||
16 | offset all or part of any compensation or benefit limitations | ||||||
17 | included as part of the elections under those Sections .
| ||||||
18 | (Source: P.A. 83-1014.)
| ||||||
19 | Section 100. The State Mandates Act is amended by adding | ||||||
20 | Section 8.37 as follows: | ||||||
21 | (30 ILCS 805/8.37 new) | ||||||
22 | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
23 | of this Act, no reimbursement by the State is required for the | ||||||
24 | implementation of any mandate created by this amendatory Act of |
| |||||||
| |||||||
1 | the 98th General Assembly. | ||||||
2 | Section 197. Severability. The provisions of this Act are | ||||||
3 | severable under Section 1.31 of the Statute on Statutes. | ||||||
4 | Section 999. Effective date. This Act takes effect upon | ||||||
5 | becoming law.".
|